Question
New South Wales Treasury has issued $1,000 face value, 4-year bonds that pay annual coupons at a rate of 9 per cent.The market interest rate
New South Wales Treasury has issued $1,000 face value, 4-year bonds that pay annual coupons at a rate of 9 per cent.The market interest rate is currently at 9%.
Am i correct in my answer
Pb = c/I (1- 1/(1+i)n) + Fn/ (1+i)n
Fn = $1,000 n = 4, I =9%, Periodic coupon rate = 9%, coupon amount = 1000 x 0.0990
Pb = 90/0.09 (1 - 1/(1+0.09)4) + 1000/(1.09)4
- = $1,000
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
