Question

In: Finance

What is the present value of bond with the following characteristics: semi annual coupon rate =...

What is the present value of bond with the following characteristics: semi annual coupon rate = 15% par= $1000, maturity = 100 years, YTM=3%

Solutions

Expert Solution

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

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