**Bond Valuation Question**Sheridan, Inc., has issued a three-year bond that pays a coupon rate of 7.0 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.6 percent, what is the market value of the bond? (Round answer to 2 decimal places, e.g., 15.25.)**Market value**: $ [_______]**Resource Options**- eTextbook and Media ---You can use the following formula to calculate the market value of the bond:1. Calculate the semiannual coupon payment.2. Calculate the number of periods.3. Calculate the present value of the bond's coupon payments.4. Calculate the present value of the bond's face value.5. Add the present values to get the bond's market value.

We need to use excel pv function to calculate bond price or market value of bond Formula is…

Answered: Sheridan, Inc., has issued a three-year…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sheridan, Inc., has issued a three-year bond that pays a coupon rate of 7.0 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.6 percent, what is the market value of the bond? (Round answer to 2 decimal places, e.g. 15.25.) Market value 24