Question
What is the value of a 20-year, 12% semiannual coupon bond, if rd= 15%?The annual couponpayment is $120. HINT: a.Multiply years by 2: N =
What is the value of a 20-year, 12% semiannual coupon bond, if rd= 15%?The annual couponpayment is $120. HINT:
a.Multiply years by 2: N = 2 x _______ = _______
b.
Divide nominal rate by 2: I/YR = ____/2 = ______
c.
Divide annual coupon by 2: PMT = ___
__
__/2 = _____
Excel= PV ( What numbers should I put in)
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
