Question
1. A 5 year bond with 10 % coupon rate and BD 2000 Face value and has yield to maturity of 6 % . Assuming
1. A 5 year bond with 10 % coupon rate and BD 2000 Face value and has yield to maturity of 6 % . Assuming annual coupon payment. Calculate price of the bond Present value of the bond.
Required:
1. Estimate the Cash Flow
2. Illustrate the time line of cash flow
3. Calculate the present value.
Additional reference:
CP= CR X FV
PV= FV/ (1 + r) n
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Handbook On Corporate Governance In Financial Institutions
Authors: Christine A. Mallin
1st Edition
1784711780, 978-1784711788
