Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Find the present value of a 3-year bond that pays an annual coupon, has a coupon rate of 6 percent, a yield to maturity of

Find the present value of a 3-year bond that pays an annual coupon, has a coupon rate of 6 percent, a yield to maturity of 5 percent, a par value of 1,000 when the yield to maturity is 5 percent.

A) 1,099.96

B) 1,018.81

C) 1,027.23

D) none of the options

what formula should i use ? And i got Fv=1000, n=3 C=30 from5*6i=0.05

thank you for your help!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

13th International Edition

1265533199, 978-1265533199

More Books

Students also viewed these Economics questions

Question

4. When is it appropriate to show grace toward others?

Answered: 1 week ago