Question
Why is n = 16 and the PMT 37.5? once bond reached 8 years, the $1000 is accounted for then? Thank you King Noodles bonds
Why is n = 16 and the PMT 37.5? once bond reached 8 years, the $1000 is accounted for then? Thank you
King Noodles bonds have a 7.5% coupon rate and a $1,000 par value.
Interest is paid semi-annually. The bond has a maturity of 8 years. If the (bond equivalent) yield on similar bonds is 6.6%, what is the value of King Noodles bonds?
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
