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What is the price today of a 3-year 4.55% coupon rate bond that returns the par value of $1000 at maturity. Use a required rate of return of 8.50% What is the price today of a 3-year 4.55% coupon rate
What is the price today of a 3-year 4.55% coupon rate bond that returns the par value of $1000 at maturity. Use a required rate of return of 8.50%
What is the price today of a 3-year 4.55% coupon rate bond that returns the par value of $1000 at maturity. Use a required rate of return of 8.50%
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*** ***** * *********** * 455% ** 1000*455% * $455maturity * 3 ******* = ******** ** *** **** = ******* ***** ** ****** cash ********** of *** **** = PV ** Coupon ******** *** * years * ** of PAR ***** ** **** ******** ** 3rd yearValue of *** **** * 455PVAF(85%3) * ******************** of *** **** = ********* + 1/(1085)2 +1/(1085)3] * **** [1/(1085)3]Value ** *** **** * ********** ***************** ** *** **** ***** * 11621 * ****** *********** ** * *****