r the folllowing cash flows. The market interest rate is 14%. What is the price of the bond? Year 0 1 2 3 4 CF 200 200 50 350 rate 14% DCF 175.44 153.89 33.75 2
r the folllowing cash flows. The market interest rate is 14%. What is the price of the bond? Year 0 1 2 3 4 CF 200 200 50 350 rate 14% DCF 175.44 153.89 33.75 2
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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Consider the folllowing cash flows. The market interest rate is 14%. What is the price of the bond?
Year | 0 | 1 | 2 | 3 | 4 |
CF | 200 | 200 | 50 | 350 | |
rate | 14% | ||||
DCF | 175.44 | 153.89 | 33.75 | 207.23 |
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