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Present Value Bond help

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    • Thread Starter

    Hi, i urgently need to understand how to do this question. Please help me. I need to find the present value of this bond, here is the info and the answer. I only need to show the method:

    Cash flow periodicity annual
    3 Maturity (years) 3
    Face value (euro) 500
    Coupon rate (annual) 6,0%
    1 year zero coupon bond price (€100) 95,50
    2nd year forw ard rate 4,800%
    3 year zero coupon bond price (€1000) 865,25
    4 year zero coupon bond price (€500) 411,50
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