At the comparable rate (10%), the present value of the $1000 maturity value of the bond is 1000*(1.10^-20) = 148.6436

Each bond makes an annual payment of the bond rate times the face value. For bond XY, that is $52.50, For bond AB, that is $140. At the comparable rate (10%), the present value of the series of payments is the payment value times

(1 - (1.10^-20))/.1 = 8.5135637

Your 5.25% bond (

148.6436 + 52.50*8.5135637 = 148.6436 + 446.9621 = 595.6057

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Your 14% bond (

148.6436 + 140*8.5135637 = 148.6436 + 1191.8989 = 1340.5425

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An on-line bond calculator can be found here.

Each bond makes an annual payment of the bond rate times the face value. For bond XY, that is $52.50, For bond AB, that is $140. At the comparable rate (10%), the present value of the series of payments is the payment value times

(1 - (1.10^-20))/.1 = 8.5135637

Your 5.25% bond (

**XY**) has a value of148.6436 + 52.50*8.5135637 = 148.6436 + 446.9621 = 595.6057

≈

**$595.61**Your 14% bond (

**AB**) has a value of148.6436 + 140*8.5135637 = 148.6436 + 1191.8989 = 1340.5425

≈

**$1340.54**_____An on-line bond calculator can be found here.