Estimate the price of a 5 year corporate issue by nanji bhd has a coupon rate...
Estimate the price of a 5 year corporate issue by nanji bhd has a coupon rate if 6%. Assume annual compounding, $1000 par value and interest rate of 8%
Homework Answers
Price of bond= present value of all the bonds cashflows discounted at int rate(8%)
=Pv of coupon payments+ pv of par value
=60/(1+8%)+60/(1+8%)^2+60/(1+8%)^3+60/(1+8%)^4+60/(1+8%)^5+1000/(1+8%)^5
=920.14
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Estimate the price of a 5 year corporate issue by nanji bhd has
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