Join TSR now and get answers to all your questions about uniSign up now

Present Value Bond help

    • Thread Starter
    Offline

    0
    ReputationRep:
    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
 
 
 
Poll
Which party will you be voting for in the General Election 2017?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.