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Title: A $100 000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What is ... Post by: gewusel on Nov 27, 2017 A $100 000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What is the purchase price to yield 7% compounded quarterly?
Title: Re: A $100 000, 8.75% bond with interest payable annually is redeemable at 103 in four years. What ... Post by: rmaccara on Nov 27, 2017 FV = $100 000; P/Y = 1; C/Y = 4; PMT = 100000(0.0875/1) = $8750.00; c = = 4; n = 4(1) = 4.
p = - 1 = 0.071859031 PP = 103000.00(1.071859031)-4 + 8750 = 103000.00(.7576164) + 8750.00(3.373044266) = 78034.49 + 29514.14 = $107 548.63 |