Question
30-year bonds: Issue called for 30-year notes: $1500000 Coupon Rate: 7.750% Coupon Payment: 1500000 * 7.750% = 116250 Price per $100 of Face Value: 106.63%
30-year bonds:
Issue called for 30-year notes: $1500000
Coupon Rate: 7.750%
Coupon Payment: 1500000 * 7.750% = 116250
Price per $100 of Face Value: 106.63%
Market Value: 106.63% * 1500000 = 1599450
1599450= (116250 / r) * [1 - 1 /(1+ r)^30] + 1500000 / (1 + r)^30
how can I solve r in this equation?
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Algebra and Trigonometry
Authors: Ron Larson
10th edition
9781337514255, 1337271179, 133751425X, 978-1337271172
