PDA

View Full Version : Bond pricing


So123
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 ?