Furry has in issue 12% bonds with a par value $100,000 and redemption value of $110,000, with interest payable quarterly. The redemption yield on the bonds is 8% annually and 2% quarterly. The bonds are redeemable on 30 June 2024 and it is now 30 June 2020. Calculate the market value of the bonds.

Answer rating: 100% (QA)

Solution Number of years of bond is 4 years from 30 June 2020 to 30 June 2024 Market v... View the full answer