How much should you pay for a 6 year 6% pay bond when interest rates are...

Question

Question

How much should you pay for a 6 year 6% pay bond when interest rates are 8% (the face value of the bond is $10,000)?
What is the present value of a $1 billion bond paying 8%, expiring in 5 years when market interest rates are 6%?

Answer 1

Answer #1

C18 fx --PV(C16,010,012,C14) years to maturity coupon rate yield facevalue 6.0% 8.00% 10000 Annually: COUPON RATE 6.00% NPER

C18 fx --PV(C16,010, C12,014) years to maturity coupon rate yield facevalue 5 8.0% 6.00% 1000000000 Annually: COUPON RATE 8.0

Answer 2

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