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%

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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

jeff jeffy answered 2 years ago

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