Solve this with correct answer please. Don't used excel show me your work please. This is IEM class
No. The price of bond is $10349.58 currently which implies that if the bond is purchased now, John will lose money.
Now price of bond is found as = PW of coupon payment + PW of face value
= 2%*10000(P/A, 7.5%/4, 40) + 10000(P/F, 7.5%/4, 40)
= 200*27.9649 + 10000*0.47566
= $10349.58
Solve this with correct answer please. Don't used excel show me your work please. This is...
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