suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. calculation using a formula, not using excel. i)A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years. ii) A discount bond with a face value of $5000 that matures in one years.
suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained. calculation using a formula, not using excel. i)A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years. ii) A discount bond with a face value of $5000 that matures in one years.
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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b) suppose that the market interest rate is 5%. Calculate the
i)A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years.
ii) A discount bond with a face value of $5000 that matures in one years.
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