Bond valuation Callaghan Motors' bonds have 14 years remaining to maturity. Interest is paid annually, they...

Question

Question

Bond valuation Callaghan Motors bonds have 14 years remaining to maturity. Interest is paid annually, they have a $1,000 par

Answer 1

Answer #1

Current market price= $ 1,073.67 calculated using PV function of Excel as follows:

А D11 R =PV(D10,D7,08,D2)*-1 B Function 1 Formula arguments Values 2 Face Value (FV) Given $1,000 3 Coupon rate (R) Given 11.

Answer 2

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