Question: what is the formula for computing the approximate market value of a bond?
Answer: Multiply the face value of the bond by the present value of $1 factor previously determined. In the example, $100,000 times 0.6139 equals $61,390, or $100,000 x 0.6139 = $61,390. Add the present value of the interest payments, determined in Step 3, to the present value of the bond's face value, determined in Step 5.