Bonds issued at 15-year, noncallable, at 10% annual coupon bonds at par value of $1000. Today, the market interest rate is 5.5%. What is the current price of the bonds, if they now have 14 years to maturity?
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Ответ:
The current price of the bonds, if they now have 14 years to maturity is $1431.53
Explanation:
From the question,
N = 14
PMT = 0.1 x 1000 = 100
R = 0.055
FV = 1000
PV = ?
Using Excel function PV = PV(R,N,PMT,FV)
PV(0.055, 14, -100 ,-1000)
= 1431.53
= $1431.53
Ответ: