bond prices
par value. coupon. year to maturity. yieldmat. price
$1000.00
7%
15
6% ?
$1000.00.
9%
20.
8% ?
$5000.00.
10%
20.
7%
?
$1000.00.
11%
30.
5%
?
Case A | B | C | D | |
Annual interest (face value * coupon rate) | 1000*.07= 70 | 1000*.09=90 | 5000*10%= 500 | 1000*11%= 110 |
Price | [PVA 6%,15*Interest] +[PVF 6%,15*par value] | [PVA 8%,20*Interest] +[PVF 8%,20*par value] | [PVA 7%,20*Interest] +[PVF 7%,20*par value] | [PVA 5%,30*Interest] +[PVF 5%,30*par value] |
[9.71225*70]+[.41727*1000] | [9.81815*90]+[.21455*1000] | [10.59401*500]+[.25842*5000] | [15.37245*110]+[.23138*1000] | |
679.86+ 417.27 | 883.63+ 214.55 | 5297.01+ 1292.1 | 1690.97+ 231.38 | |
$ 1097.13 | 1098.18 | 6589.11 | 1922.35 |
**find all present value annuity factor and present value factor from there table respectively .
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