In: Finance
What is the present value of bond with the following characteristics: semi annual coupon rate = 15% par= $1000, maturity = 100 years, YTM=3%
| We have to use financial calculator to solve this | |||
| put in calculator | |||
| FV | 1000 | ||
| PMT | 1000*15%/2 | 75 | |
| I | 3%/2 | 1.50% | |
| N | 100*2 | 200 | |
| compute PV | ($4,796.37) | ||
| Ans = | $4,796.37 | ||