PTX is currently issuing bonds in $. 100,000. five years until the bond is paid off. The coupon rate is set at 11% for the first three years, but it is based on a floating rate that is derived from the government bank's average annual deposit interest rate for the next two years. The annual deposit interest rates offered by government banks are as follows: Bonds are sold at 95% of their nominal value A 15 B 14 C 16 D 17 E 13 F 14 G 16 Coupons for the bank's annual deposit interest rate (percent) are used every six months. A yield of 15% is required for investors.

 

Questions: 1. If you buy the bond now and keep it until it matures, what is the fair price? 2. Determine the bonds' NPV, or net present value, for your investment. 3. We must first determine the bond's cash flows before we can determine the fair price of the bond. What is the yield to call if the call price is IDR 115,000 and the bond is a Call Bond with a two-year call date? The bond has a nominal value of $. 100,000, with a 11% coupon rate for three years. The annual coupon payment will therefore be: Yearly coupon installment rises to $ x ostensible worth. 100,000 x 11% = $. 12,000 Since coupons are given out every six months, the semi-annual payment will be as follows?