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how do i calculate P without having n? i understand the rest of the problem but both forumals i tried using required n in the
how do i calculate P without having n? i understand the rest of the problem but both forumals i tried using required n in the annuity
Example: 20.3 Strategy: Find P Find Q Find n You are given the following information about an n-year bond, where n > 10: V=4% (i) The bond pays 8% semiannual coupons and has face value amount 1,000 - F-C (ii) The bond is redeemable at par + 5 1) (iii) The bond is callable at par 5 years after issue or 10 years after issue premium P>1000 (iv) P is the price to guarantee a yield of 6.8% convertible semiannually and Q is the price to guarantee a yield of 8.8% convertible semiannually. @ 10: V=4% (i) The bond pays 8% semiannual coupons and has face value amount 1,000 - F-C (ii) The bond is redeemable at par + 5 1) (iii) The bond is callable at par 5 years after issue or 10 years after issue premium P>1000 (iv) P is the price to guarantee a yield of 6.8% convertible semiannually and Q is the price to guarantee a yield of 8.8% convertible semiannually. @ Step by Step Solution
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