The market price for the bond of company is 991.47.
When comparing the current interest rate to the bond's stated interest rate, the market price of a bond is calculated. Two components make up the bond's market price. The bond's face value's present value makes up the first component. The present value of the bond's interest payments makes up the second component. A $100,000 bond, for instance, has interest paid on it twice a year. 8 percent is the quoted interest rate. The interest rate on the market right now is 10%. Five years pass until the bond expires. For the interest payments, ascertain the annuity factor's present value. Utilize the annuity table's present value. Because of the bond's five-year maturity and semi-annual interest payment schedule,
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