Question
Consider the following details for a bond issued by Bravo Incorporated: Issue Date 8/5/2000 Maturity Date 8/5/2030 Annual Coupon Rate (ANNUAL coupons) 9% Face Value
Consider the following details for a bond issued by Bravo Incorporated:
| Issue Date | 8/5/2000 |
| Maturity Date | 8/5/2030 |
| Annual Coupon Rate (ANNUAL coupons) | 9% |
| Face Value | $1,000 |
Suppose that todays date is 8/5/2004. What should the current trading price be for this bond if investors want a 12% ANNUAL return? I used Excel for this, the PV formula, I wanted to see if I would get the same answer you would to check against my work. Thanks so much!
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Development Finance Innovations For Sustainable Growth
Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux
1st Edition
331954165X, 978-3319541655
