# Bond question from "Buffett's 3 Favorite Books"

Here's the paragraph in question:

"“I bought these 30-year bonds for $ 1,000 each only 3 years ago. These bonds pay 6% interest every year. Right now, everyone is scared about the economy, and I can sell each bond for $ 1,432. If people were going to buy a bond today, the best rate they could get is 3.5%."

My question is the math and how he arrived at exactly $1,432.00. I understand the basis of why it's worth more now, but just not how we arrived at that exact figure. Can someone please the work?

Thank you!

## Comments

$60/(1.035)^2=$56.01=second payment discounted at 3.5% for two years.

$60/(1.035)^3=$54.12=third payment discounted at 3.5% for three years.

Do this all the way to thirty years and add in the $1000 principal discounted for thirty years.

$1000/(1.035)^30=$356.28

Add them all together to get

$57.97+$56.01+$54.12+......+$356.28=

Current bond value