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PLEASE EXPLAIN CHECK IF I AM CORRECT. THANK YOU. A bond issue for 10,000,000 with an 6% coupon, with interest paid semiannually. The bond is
PLEASE EXPLAIN CHECK IF I AM CORRECT. THANK YOU.
- A bond issue for 10,000,000 with an 6% coupon, with interest paid semiannually. The bond is for 20 years. The market rate of interest is 8%
FV: -10,000,000
PV: ? 8,020,722.61
PMT : 600,000/2 =300,000
I/Y: 8%/2= 4
N: 20 X 2 = 40
- A bond issue for 10,000,000 with a 12% coupon paid semiannually. The bond is for 10 years. The market rate of interest is 11%.
FV: -10,000,000
PV: ? 4,805,400.70
PMT : 1,200,000/2= 600,000
I/Y: 11%/2= 6.5
N: 10/2= 5
- A zero coupon bond issue for 10,000,000. The bond is for 15 years and the market rate of interest is 7%.
FV: -10,000,000
PV: ? - 87,454,679.85
PMT :10,000,000
I/Y: 7
N: 15
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