What is the present value of a bond with a par value of $1000, a coupon...
What is the present value of a bond with a par value of $1000, a coupon rate of 8% and a maturity of 5 years assuming you have a 10% discount rate? Assume your coupons are paid once per year.
Homework Answers
| Present value of bond | = | =-pv(rate,nper,pmt,fv) | ||
| = | $ 924.18 | |||
| Where, | ||||
| rate | = | 10% | ||
| nper | = | 5 | ||
| pmt | = | $ 80 | ||
| fv | = | $ 1,000 | ||
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What is the present value of a bond with a par value of $1000, a
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