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 | ||