Question
What's the Present Value of a 10 year bond issued with a 8% Coupon. The market rate premium is 5%. The bond par value is
What's the Present Value of a 10 year bond issued with a 8% Coupon. The market rate premium is 5%. The bond par value is $1,000. Coupon payments are made semi-annually.
Par
Coupon rate
Bond Term
Coupon Payment
market rate premium
PV
rate
n
PMT
FV
**Note: please answer in excel format. Thank you
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
