Consider a five-year, 12% annual payment bond having a face value of 1 000 . Suppose that
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a five-year, 12% annual payment bond having a face value of 1 000 .
Suppose that the bond is priced at a premium to yield 10% .
Year Cash Flow PV at 10%
PV/Price
Yr x (PV/Pr)
yr1= 120 yr 2= 120 yr 3= 120 yr4= 120 yr 5 =1120
Determine market value and duration of the bond.
Related Book For
Posted Date: