To calculate the value of the PacTen bond, we can use the present value formula for bonds. The annual coupon payment is 10% of the face value (assumed to be $1,000), which equals $100. Given the current market interest rate is 16%, we need to discount the future cash flows (annual coupons and face value) at this rate. The present value of the bond can be calculated as the sum of the present value of the annuity (coupons) and the present value of the face value, resulting in a bond value of approximately $550.
A ten-year bond pays 11 % interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity
The bond's price is $996.76. The YTM is 8.21%. by E. Sanchez
8.5
$1297
2.5 percent annually
year
It means the percent of interest paid annually (p.a. means per annum).
5% ($72.50) per year.
The interest paid annually is 700*5/100 = 35
Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.
11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.
With simple interest, it is 1.5% per month. If compounded, it is 1.389% approx.
Interest = 2472
1257
It is approx 77393.69 units of currency.
29.86
Assuming interest is paid annually, 100000*(1.05)10 = 162889.46