1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to...
1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to maturity (EAR) of 7.6%.
What should be the total face value of the bonds (in $ million)?
2-
Treasury spot interest rates are as follows:
| Maturity (years) | 1 | 2 | 3 | 4 |
| Spot rate (EAR) | 2.1% | 2.8% | 3% | 4.5% |
What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?
Homework Answers
1) Face value of bond:-
=PV(rate,nper,pmt,fv)
=PV(7.6%,10,0,50000000)
=24035175.17 or 24.04 million
2) Price of bond:-
=PV(3%,3,0,1000)
=915.14
Add Answer to:
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