A 10,000 Par Disney bond has a 4% coupon and will mature in 10 years. If its yielding (YTM) 5% what will be today's price? all cash flows at teh end of the per
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A 10,000 Par Disney bond has a 4% coupon and will mature in 10 years.
If its yielding (YTM) 5% what will be today's price?
all cash flows at teh end of the period!
The price of bond will be the present value of all coupons and present value of face value at receivable at the time of maturity.
where
C= coupon payment
r= YTM
FV =Face/Par value
n=number of periods
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- A 10,000 Par Disney bond has a 4% coupon and will mature in 10 years. If its yielding (YTM) 5% when you buy it, what will be your annual cash flow (income) all cash flows at teh end of the period!How much should a $10,000 face- value, zero-coupon bond, maturing in 10 years, be sold for now if its rate of return is to be 4.5% compounded annually?A zero coupon bond will be worth $15,000 when it matures and redeemed after 10 years. How much would an investor be willing to pay now for this bond if a 3 percentage per year yield is desired?
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