How do you calculate this Present Value of a Cash Flow?
magic_ian asked:
Hi, How do you solve: Caclulate the price of a 10-year $50,000 “junk” bond that pays a coupon rate of 10% p.a. (semi-annual compounding) if the market yield is 18% p.a. compounding semi-annually.
Hi, How do you solve: Caclulate the price of a 10-year $50,000 “junk” bond that pays a coupon rate of 10% p.a. (semi-annual compounding) if the market yield is 18% p.a. compounding semi-annually.
Could you please show working out.
Cheers 
Betty
aww.. finance days..
if you have a financial calculator plug in pv 50,000; yrs=10 ir=.10 make sure ur calculator is semi annual and then press fv it should go..