Calculate the current price of the following bonds. Current date is 01 January 2020 Face value...

 

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Calculate the current price of the following bonds. Current date is 01 January 2020 Face value Interest, pa Required rate Coupon Maturity Annually 31 Dec 2020 a. $10,000 b. $5,000 c. $2,000 d. $100,000 4% 5% 5.5% 8% e. $10,000 6% f. $25,000 4% 5% 6% 6% 6.5% 8% 6% Nil Nil Quarterly Semi annual Monthly 01 July 2021 01 Oct 2022 31 Dec 2030 31 Dec 2040 01 July 2025 Calculate the current price of the following bonds. Current date is 01 January 2020 Face value Interest, pa Required rate Coupon Maturity Annually 31 Dec 2020 a. $10,000 b. $5,000 c. $2,000 d. $100,000 4% 5% 5.5% 8% e. $10,000 6% f. $25,000 4% 5% 6% 6% 6.5% 8% 6% Nil Nil Quarterly Semi annual Monthly 01 July 2021 01 Oct 2022 31 Dec 2030 31 Dec 2040 01 July 2025

Answer rating: 100% (QA)

To calculate the current price of bonds you can use the present value formula The present value of a bond is the sum of the present values of its futu... View the full answer