a 1000 par value bound with 7 annoul coupon payments a 10 yi

a $1000 par value bound with %7 annoul coupon payments, a 10% yield to maturity which mauters in four years is currently worth $904.90. How much will it be worth two years from now if the market rate remains constant?

Using financial calculator BA II Plus -

I/Y = Rate or yield / Frequency (of coupon payment) = 10.00

PMT = Payment = Coupon x Frequency = -$70.00

N = Total number of remaining periods = Years x Frequency = 2

FV = Future Value = -$1,000.00

CPT > PV = Bond Value = $947.93

a $1000 par value bound with %7 annoul coupon payments, a 10% yield to maturity which mauters in four years is currently worth $904.90. How much will it be wort

a 1000 par value bound with 7 annoul coupon payments a 10 yi

Solution

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