Carrying value of a bond

[Onestar]

Hello all,
A 3-year bond, paying a coupon rate of 6% and has a YTM of 7%. Par Value = $,1000.
If I were to sell the bond 1 year early at time = t2 and wanted to calculate the carrying value.
Carrying value:1060/1.07 = $990.65
Why can’t I calculate the carrying value by just calculating the PV at time=t2?
N=2, PMT=60, I/Y=7% and FV=$1,000: I get $981.92 ?

 

[MrSmart]

N=1

 

[Onestar]

Brain malfunction

 

[Chirantana]

HI,
Carrying value based on remaining years of maturity.
So Calculate for N=1
My Value is comning = 940.1869

 

[MrSmart]

Onestar wrote:
Brain malfunction

Happens to the best of us.

Chirantana wrote:
HI,
Carrying value based on remaining years of maturity.
So Calculate for N=1
My Value is comning = 940.1869

It’s $980

 

[Chirantana]

Hi,
I calculated it using following input on BA II calculator:
n=1 fv =1000 pmt=6 I/y = 7 cpt pv
Ans: 940.1869
What I am missing please correct?

 

[S2000magician]

pmt = 6% x $1,000 = $60.

 

[Chirantana]

Thanks Magician

 

[S2000magician]

You’re welcome.

 

[geo]

At a year or less you can use money market convention to price it as well. = 1,060/1.07. Spare your calculator batteries.