What is the present value of a $600,000 10-year Bond with annual interest payments of $54,000...
What is the present value of a $600,000 10-year Bond with annual interest payments of $54,000 (contract rate of 9%) assuming an effective rate of 10%?
Homework Answers
| Present value of bond | = | =-pv(rate,nper,pmt,fv) | Where, | |||||||
| = | $ 5,63,132.60 | pv | = | Present value of cash flow | = | ? | ||||
| rate | = | Discount rate | = | 10% | ||||||
| nper | = | Number of period | = | 10 | ||||||
| pmt | = | Coupon payment | = | $ 54,000 | ||||||
| fv | = | Face value | = | $ 6,00,000 | ||||||
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What is the present value of a $600,000 10-year Bond with annual
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