Answers
and Solutions: 7 - 1Chapter 7Bonds
and Their Valuation7-1 With your financial calculator, enter the following:N = 10; I = YTM = 9%; PMT = 0.08 × 1,000 = 80; FV = 1000; PV = VB = ?PV = $935.82.PV = (PMT*PVIFA9%, 10) + (FV*PVIF9%, 10)= 80*6.4177 + 1000*.4224= $935.827-
2 Wi[r]