Chapter 9: Net Present Value and other Investment Criteria
3) PV = price or value of the bond. The value of a bond is simply the PV of all of the future payments. 4) I/Y = YTM = discount rate. 5) N = the number of coupon payments. Examples: 1) Calculate the value of a 10% coupon bond with a face of 1,000, 10 years to maturity, and a … ................
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