Question
In: Finance
Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of...
Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.75%, based on semiannual compounding. What is the bond's price?
Solutions
Expert Solution
The Bond's price is calculated using the PV function as follows:-
=PV(rate,nper,pmt,fv)
=PV(6.75%/2,10*2,6.25%/2*1000,1000)
=964.06
jeff jeffy answered 2 years agoRelated Solutions
Haswell Enterprises' bonds have a 10-year maturity, a 6.25% semiannual coupon
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