Can you also include the formulas as well
Q3. | ||||||
Annuity PVF at 3% for 30 periods | 19.60044 | |||||
PVF at 3% for 30th period | 0.411987 | |||||
Par value of bonds | 1000 | |||||
Semi Annual Cash interest(1000*5.50%*6/12) | 27.5 | |||||
Present value of Maturity | 411.987 | |||||
Present value f Interest | 539.0121 | |||||
Price of Bonds | 951 | |||||
Q4. | ||||||
Annuity PVF at 4.58% for 40 periods | 18.40158 | |||||
PVF at 4.58% for 40th period | 0.171929 | |||||
Par value of bonds | 1000 | |||||
Semi annual cash interest | x | |||||
Present value of Maturity | 171.929 | |||||
Present value f Interest | 18.40158 x | |||||
Price of Bonds | 171.929+18.40158x | |||||
As per given in Question, the price of bonds is $ 985. Hence, the equation is: | ||||||
985 = 171.929+ 18.40158 x | ||||||
x= 44.185 | ||||||
Semi annual interest = 44.185 | ||||||
Annualised Interest = 44.185*2 = 88.37 | ||||||
Annual coupon interest rate = 88.37 /1000*100 = 8.837% | ||||||
Can you also include the formulas as well Problem 3 (10 points): FIN300 Inc. recently issued...
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