Question

In: Finance

Suppose Samsung have issued a bond with par value of 1000 BDT. The bond provides 10%...

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.

Solutions

Expert Solution

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


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