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    scruggee's Avatar
    scruggee Posts: 3, Reputation: 1
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    #1

    Nov 6, 2007, 08:04 AM
    Computing current price of bonds
    My company has $1000 par value bonds outstanding at 8% interest. The bonds will mature in 25 years. How do I compute the current price of the bonds if the present yield to maturity is 7%?
    manik chand dey's Avatar
    manik chand dey Posts: 63, Reputation: 2
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    #2

    Oct 3, 2008, 03:51 AM

    Answer is available
    monicaratiu's Avatar
    monicaratiu Posts: 1, Reputation: 1
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    #3

    Oct 13, 2008, 09:16 PM

    Where is the answer available
    manik chand dey's Avatar
    manik chand dey Posts: 63, Reputation: 2
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    #4

    Oct 24, 2008, 11:39 PM
    Par value=1000, coupon rate8% that is 80,YTM or required rate of return 7%,number of years for maturity=25 years

    current price=findthe value of80,annuity for 25 years at YTM at 7%, that is presentvalue of an annuity.
    Then add the answer to 1000/(1+0.07)^25.this is your answer.
    Pepper4046's Avatar
    Pepper4046 Posts: 1, Reputation: 1
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    #5

    Nov 10, 2008, 12:02 PM
    If you start with a $100 of stock and it grows to $120, what would be the growh rate?
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