4-7 Bond pricing Example(continued) What is the price of the bond if the required rate of return is 690? (1.06)(M3× 60 60 060 PV= 1.06) PV=S1.000 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 4- 7 Irwin/McGraw-Hill Bond Pricing Example (continued) What is the price of the bond if the required rate of return is 6 %? $1,000 (1.06) 1,060 (1.06) 60 (1.06) 60 1 2 3 = = + + PV PV