Question
A 12 percent coupon rate bond makes semi-annual interest rate payments. Par value is $1,000. The bond matures in 10 years. The required rate of
A 12 percent coupon rate bond makes semi-annual interest rate payments. Par value is $1,000. The bond matures in 10 years. The required rate of return is 10 percent. Use any of the following information to find the current price.
PVIFAi=12 percent,n=10=5.6502
PVIFi=12 percent,n=10=.3220
PVIFAi=10 percent,n=20=8.5136
PVIFAi=5 percent,n=20=12.4622
PVIFi=5 percent,n=20=.3769
PVIFi=6 percent,n=10=.5584
a. $942 b. $1,000 c. $1,063 d. $1,125 e. none of the above
I already know the answer i just need to understand how to calculate the solution thankyou i will thumbs up
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