Question
PT Cerah Ceria issued a three-year 4,25% annual coupon bond with the maturity value Rp 1.000.000.000,-. The following table reports the yield rates as follows:
PT Cerah Ceria issued a three-year 4,25% annual coupon bond with the maturity value Rp 1.000.000.000,-. The following table reports the yield rates as follows:
| Maturity | Par Rate | Spot Rate | Forward Type | Forward Rate |
|
| 1 | 2,5000% | 2,5000% | 0 years from now | 2,5000% |
|
| 2 | 3,0000% | 3,0080% | 1 year from now | 3,5180% |
|
| 3 | 3,5000% | 3,5240% | 2 years from now | 4,5640% | |
Suppose that PT Cerah Ceria has a special right to settle the bond before the maturity date. Estimate the Bond value (considering the special right) from PT Cerah Ceria!
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Multinational Finance Evaluating The Opportunities Costs And Risks Of Multinational Operations
Authors: Kirt C. Butler
6th Edition
111921968X, 978-1119219682
