You just won the lottery, which promises you $540,000 per year for the next 20 years,...

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You just won the lottery, which promises you $540,000 per year for the next 20 years, starting in one year. If your discount

What is the value of a bond with a par value of $1,000, a coupon rate of 8.50% (semiannual payments), and a yield to maturity

What is the value of a perpetual bond with a par value of $1,000 and a coupon rate of 7.25% (semiannual coupon)? The bond has

business finance

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Answer 1

Answer #1

1.
=540000/8.25%*(1-1/1.0825^20)=5204599.86975804

2.
=PV(5.8%/2,14*2,-8.5%*1000/2,-1000)=1256.44071443233

3.
=1000*7.25%/6.9%=1050.72463768116

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Answer 2

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