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  • Aug 7, 2008, 01:40 PM
    So123
    bond pricing
    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
  • Aug 21, 2008, 01:39 AM
    Ithappenstoall
    We assume that the bond is issued at par price or a certain market price ?

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