4-8 Bond pricing Example(continued) What is the price of the bond if the required rate of return is15 %0? 60 60 1.060 PV= (1.15)(1.5)3× 5)2(1.15) P=$794.51 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 4- 8 Irwin/McGraw-Hill Bond Pricing Example (continued) What is the price of the bond if the required rate of return is 15 %? $794.51 (1.15) 1,060 (1.15) 60 (1.15) 60 1 2 3 = = + + PV PV