Prem is considering the purchase of a bond currently selling at Rs. 878.50 The bond has four years?
... to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of
... to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.
(a) Calculate the intrinsic value (Present value) of the bond. Should prem buy the bond?
(b) Calculate the yield to maturity of the bond
or:... to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.(a) Calculate the intrinsic value (Present value) of the bond. Should prem buy the bond?(b) Calculate the yield to maturity of the bond
