Ch 06 Bond Valuation Finished

Ch 06 Bond Valuation Finished - A 1 2 3 4 5 6 7 8 9 10 11...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Annual Payments Inputs Number of Periods to Maturity (T) 8 Face Value (PAR) $1,000.00 Discount Rate / Period (r) 4.26% Coupon Payment (PMT) $45.00 Bond Price using a Timeline Period 0 2 3 4 5 6 7 8 Cash Flows $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $1,045.00 Present Value of Cash Flow $43.16 $41.40 $39.71 $38.08 $36.53 $35.04 $33.60 $748.47 Bond Price $1,015.99 Bond Price using the Formula Bond Price (P) $1,015.99 Bond Price using the PV Function Bond Price $1,015.99 B OND V ALUATION ( 29 ( 29 ( 29 ( 29 1 1 1 T T PMT r PAR P r r - - + = + + A B C D E F G H I J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EAR and APR Annual Percentage Rate Inputs Rate Convention Annual Coupon Rate 4.625% Yield to Maturity (Annualized) 3.94% Number of Payments / Year Number of Periods to Maturity (T) Face Value (PAR) Outputs Discount Rate / Period (r) 1.97% Coupon Payment (PMT) $23.13 Bond Price using a Timeline Period 0 2 3 4 5 6 7 8 Time (Years) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Cash Flows $23.13 $23.13 $23.13 $23.13 $23.13 $23.13 $23.13 $1,023.13 Present Value of Cash Flow $22.68 $22.24 $21.81 $21.39 $20.98 $20.57 $20.17 $875.28 Bond Price $1,025.12 Bond Price using the Formula Bond Price $1,025.12 Bond Price using the PV Function Bond Price $1,025.12
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course BUS 170 at San Jose State University .

Page1 / 4

Ch 06 Bond Valuation Finished - A 1 2 3 4 5 6 7 8 9 10 11...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online