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A bondholder that owns $1,000, 10%, 10 year bond has

A bondholder that owns $1,000, 10%, 10 year bond has
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Answer #1
the right to receive $1,000 at maturity.
answered by: Rodger Paxess
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Answer #2
Bond price = C*PVIFA n,r +M*PVIF n,rHereC= $100[since 1000*10% = 100]M= $1000n= 10 yearsr = 10% [assumed]Bond price = 100*PVIFA 10years, 10% +1000*PVIF 10years , 10%= 100*[6.145]+1000*[0.386]=$614.5+$386= 1000here Required rate hasnot beenmnetioned..to sloove the problem....
answered by: Pavlos Cs
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