In: Finance
What is the value of a 10-year, PKR 100,000 par value bond with a 12% annual coupon if its required rate of return is 14%?
value of a 10-year, PKR 100,000 par value bond | 92,333.44 |
Paticulars | Amount |
PV of coupon payments = 100,000*12%*5.21612 | 62,593.44 |
PV of maturity price =100,000*.2974 | 29,740.00 |
Market value of bond =62,593.44 + 29,740 | 92,333.44 |
Time | PVF at 14% |
1.00 | 0.87719 |
2.00 | 0.76947 |
3.00 | 0.67497 |
4.00 | 0.59208 |
5.00 | 0.51937 |
6.00 | 0.45559 |
7.00 | 0.39964 |
8.00 | 0.35056 |
9.00 | 0.30751 |
10.00 | 0.26974 |
PVF for 10 Years | 5.21612 |