Question
PT FLORIS, Tbk issued bonds on January 1 2007. The bonds are sold at a nominal value of IDR 5,000,000 per share and will mature
PT FLORIS, Tbk issued bonds on January 1 2007. The bonds are sold at a nominal value of IDR 5,000,000 per share and will mature on December 31 2036. Bond interest (coupon) payments are made every 6 months (on June 30 and December 31). Bond interest is 12% per year. Question:
a) What is the bond's yield to maturity on January 1, 2007?
b) What will the bond price be on January 1, 2012, if the prevailing interest rate falls to 10% per year?
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
