Let's price a bond that pays a coupon. This investors' decide rate to return is 9%. What should this investor pay for a bond with a face value of a thousand that pays an 8.5% annual coupon and matures in six years? So we're gonna use the Excel PV formula to solve this problem, but first of all, we have to figure out what the face value or the future value of the bond is. Well, that's gonna be 1000. N is the number of periods to maturity, that's six years, R is the required rate of return or the return or the interest? 9%. The payment is are these coupons that are getting paid once every year for six years, and they will be 8.5% times the face value of the bond. That equals $85 per bond per year. And finally, we are going to let Excel do the work for us. So we're gonna use equals minus PV tab to select the function. What is the rate here? Well, the rate or the required rate will be the 9%. The N per is 9 The number of periods to maturity, the payment is the annual coupon payment 85. And finally the FV is the 1,000. We're gonna close the bracket. Now hit enter and we get the answer. 977.6. That's what this investor could pay at the most for this bond.