You decide to fund a new BCOMM common room in the new building at Haskayne. You will
Fantastic news! We've Found the answer you've been seeking!
Question:
You decide to fund a new BCOMM common room in the new building at Haskayne. You will give the school $10,000 every year in perpetuity. You can't start making these payments until 5 years from today. If the interest rate is 7% per year, what is the present value of your gift? Explain your answer in detailed.
You purchased a five-year bond 18 months ago. The bond has a face value of $1000 and semi-annual coupons. You just received the third coupon payment earlier today and the price of the bond is $950 today. The yield to maturity is 7.96%, What is the coupon rate? Explain your answer in detailed.
Related Book For
Economics of Money, Banking and Financial Markets
ISBN: 978-0321598905
9th Edition
Authors: Frederic S. Mishkin
Posted Date: