ABC corporation has issued 12 percent annual coupon 1000 Rupees par value bonds maturing in 10 years. What should be the current price of this bond if the interest rate is 15 percent? in previous answer used excel
ABC corporation has issued 12 percent annual coupon 1000 Rupees par value bonds maturing in 10 years. What should be the current price of this bond if the interest rate is 15 percent? in previous answer used excel
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- ABC corporation has issued 12 percent annual coupon 1000 Rupees par
value bonds maturing in 10 years. What should be the current price of this bond if the interest rate is 15 percent?
in previous answer used excel funtion please solve by formula of contains fv, pmt,pv,
Expert Solution
Step 1
par value =1000
Annual coupon =12%
Annual coupon =120
MATURITY =10 years
YEILD to MATURITY =15%
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