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A ten-year $1,000 bond pays $35 every six months. If the current interest rate is 8.2%, find the fair market value of the bond. Hint:
- A ten-year $1,000 bond pays $35 every six months. If the current interest rate is 8.2%, find the fair market value of the bond.
Hint: You must do the following.
- Find the present value of $1000.
- Find the present value of the $35 payments.
- The fair market value of the bond = a + b
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
