Bond valuation often feels daunting, but this video simplifies the process so you can confidently tackle exam and assignment questions. We break down a problem involving Bond X, a 10-year semi-annual coupon bond issued at par five years ago. The bond originally had a 6% yield to maturity, but it has since risen to 8%. With five years remaining and a $1,000 face value, we calculate its current value using two clear approaches. First, we identify the key inputs: the semi-annual payment structure, original par issuance (where the coupon rate equals the initial yield), and the reduced time to maturity. These details guide us in calculating the bond's present value. Using a financial calculator, we input the face value ($1,000), remaining periods (10), payment amount ($30), and semi-annual yield (4%). This yields a present value of $918.89. Alternatively, the bond valuation formula separates the discounted coupon payments and face value, confirming the same result. This video sharpens your understanding of bond valuation by breaking it into manageable steps and offering practical tips for clarity and precision. By the end, you’ll have a solid framework for solving similar problems with confidence.