Question: Bond Valuation PT GAMA issues bonds with a nominal value of Rp 1 , 0 0 0 , 0 0 0 , a coupon interest
Bond Valuation
PT GAMA issues bonds with a nominal value of Rp a coupon interest rate of per year, and a bond term of years. Currently, the bonds are promised at a price of Rp which reflects a discount to the nominal value of the bonds. The current market interest rate is
Questions:
Calculate the present value price of the bond using the prevailing market interest rate
Determine whether this bond is a discount bond or a premium bond.
explain whether investors will get a capital gain or capital loss if they buy this bond now and hold it until maturity.
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