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PV of a bond when the market discount rate is not known? I need to be able to find r using excel preferably or a
PV of a bond when the market discount rate is not known?
I need to be able to find r using excel preferably or a financial calculator
Equation 1 is a general formula for calculating a bond price given the market discount rate: (1) where PV = present value, or the price of the bond PMT = coupon payment per period FV = future value paid at maturity, or the par value of the bond r = market discount rate, or required rate of return per period N = number of evenly spaced periods to maturity
PMT PMT PV = (1+r)? . (1+r)? + + + PMT + FV (1+r)^ PMT PMT PV = (1+r)? . (1+r)? + + + PMT + FV (1+r)^
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