am enclosing a copy of my spreadsheet below. For the coupon rate (100 * 10%) =100 For the Present Value =-PV(B8,B7,B6,B4) Particulars Values Face Value 1000 Coupon Rate 10% Coupon Payment 100 Number of years 15 Market Interest Rate 15% Present Value $707.63
am enclosing a copy of my spreadsheet below. For the coupon rate (100 * 10%) =100 For the Present Value =-PV(B8,B7,B6,B4) Particulars Values Face Value 1000 Coupon Rate 10% Coupon Payment 100 Number of years 15 Market Interest Rate 15% Present Value $707.63
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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Dear Bartleby, I was not able to verify the same answer that was calculated to the preceding question. What is the value of a 15-year 10% $1000.00 coupon bond when the market interest rate is 15%
The answer given was 708; however, when I did the calculations in excel, I came up with 707.63
I would appreciate it if you would recheck the answer given, in addition to a detailed explanation.
I am enclosing a copy of my spreadsheet below. For the coupon rate (100 * 10%) =100
For the
Particulars | Values |
Face Value | 1000 |
Coupon Rate | 10% |
Coupon Payment | 100 |
Number of years | 15 |
Market Interest Rate | 15% |
Present Value | $707.63 |
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