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the current market yield for your bond with the indicated annual coupon rate and
What is the Present Value of the annual coupon, par value bond to maturity?
Coupon Discount Factor Present Value
Period 1389*6.5% (1+8.75%)^Period (Coupon / Discount Factor)
1 90.285 1.087500 83.02
2 90.285 1.182656 76.34
3 90.285 1.286139 70.20
4 90.285 1.398676 64.55
5 90.285 1.521060 59.36
6 90.285 1.654153 54.58
7 90.285 1.798891 50.19
8 90.285 1.956294 46.15
9 90.285 2.127470 42.44
Present Value of the Annual Coupon 546.83
What is the Present Value of a bond using the same data you are given in Year 2, but with the similar bond yield p
Bond's repayment coupon Net cashflows
Period 1389*6.5% Bond's repayment + coupon
1 90.285 90.285
2 90.285 90.285
3 90.285 90.285
4 90.285 90.285
5 90.285 90.285
6 90.285 90.285
7 90.285 90.285
8 90.285 90.285
9 1389 90.285 1479.285
Present Value of the Bond
What is the Present Value of the zero-coupon bond to maturity?
Description Amount
Par Value of the Bond 1590
Discount Factor (1+3.2%)^9 1.32775295187563
Present Value of the Bond 1197.51193002728 1590/(1+3.2%)^9
in year 1, the par value bond is $1000, the annual coupon rate is 3.5%, and the bond is currently trading at $1500.75. In year 2
h the indicated annual coupon rate and