The interest rate is 5 per half year Be my guest if you want to add 40 terms I prefer the annuity method The coupons are worth The final payment is worth PV(Principal Repayment) $100, 000 (1 05)40 $1...

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The interest rate is 5 per half year Be my guest if you want to add 40 terms I prefer the annuity method The coupons are worth The final payment is worth PV(Principal Repayment) $100, 000 (1 05)40 $14,204 57 Therefore, the bond is worth about $39,943 20 today PV (Coupons) C $1,500 1 1 (1 r) 1 (1 05...

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The interest rate is 5% per half-year. Be my guest if you want to add 40 terms.

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Corporate Finance An Introduction

The interest rate is 5% per half-year. Be my guest if you want to add 40 terms.

Question:

PV (Coupons) C. = $1,500. 1 - [1/(1+r)] [1/(1.05) 140 0.05 $25,738.63

Step by Step Answer:

Corporate Finance An Introduction