Bond Calculation Exercise The Government of Canada is issuing a new 4 year Bond Today to...
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Bond Calculation Exercise The Government of Canada is issuing a new 4 year Bond Today to yield 10% annually. We wish to purchase $10,000 of the issue. How do we prove it is worth that amount to us? Year Period Rate Payment Amount 112 CM 3+++ 2 3 4 N I FV 1 5% 2 5% 3 5% 4 5% 5 5% 6 5% 67 7 5% 8 5% 5% 00 8 500 500 500 500 500 500 500 500 10,000 Present Value PV (PV of Cash Flows) (PV of Capital repaid) 0.00 (PV of Flows & Capital) Bond Calculation Exercise The Government of Canada is issuing a new 4 year Bond Today to yield 10% annually. We wish to purchase $10,000 of the issue. How do we prove it is worth that amount to us? Year Period Rate Payment Amount 112 CM 3+++ 2 3 4 N I FV 1 5% 2 5% 3 5% 4 5% 5 5% 6 5% 67 7 5% 8 5% 5% 00 8 500 500 500 500 500 500 500 500 10,000 Present Value PV (PV of Cash Flows) (PV of Capital repaid) 0.00 (PV of Flows & Capital)
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To determine whether the 10000 investment in the 4year bond issued by the Government of Canada is wo... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
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