bond pricing

So123 · #1 Aug 7, 2008, 01:40 PM

On december 31,2002 a company issued a 3 year , 10% annual coupon bond with a future value of $100000

Calculate the book value of the bond at year end 2002,2003,2004and the interest expenses for 2003,2004,2005,assuming the bond was issued at a market rate of interest of
1) 10%
2) 9%
3) 11%

I want to know that how to calculate present value for that.

thanks in advance

Ithappenstoall · Aug 21, 2008, 01:39 AM

we assume that the bond is issued at par price or a certain market price ?



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!