Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What's the Par Value of a 25-year bond making semi-annual coupon payments of $45? The bond is presently valued at $2618.48. The market rate is
What's the Par Value of a 25-year bond making semi-annual coupon payments of $45? The bond is presently valued at $2618.48. The market rate is 8%.
| Par | ? | ||
| Coupon rate | ? | ||
| Bond Term | 25 years | ||
| Coupon PAYMENT | 45 | ||
| market rate premium | 8% | ||
| Present Value | 2618.48 | ||
| 0.767% | |||
| PV | ($2,618.48) | ||
| rate | 4.000000% | ||
| n | 50 | ||
| PMT | 45 | ||
| FV | $11,738.69 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Understanding Decentralized Finance How DeFi Is Changing The Future Of Money
Authors: Rhian Lewis
1st Edition
1398609390, 978-1398609396
