In: Finance
Suppose Samsung have issued a bond with par value of 1000 BDT. The bond provides 10% coupon interest rate and pays interest annually and has 10 years to maturity. The Required Return is 8%. Calculate the value of this bond.
The par value (FV) of bond is :1000 BDT
The PMT = 10% * 1000
= 100 BDT
I/Y = 8%
N = 10 Years
So, the present value of bond is : 1134.2016 BDT