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The value of a level-coupon bond is given by the formula below: a C (1+r)*(1+73+-+ä frittato )r)? F + + (1+)(1+) Show th
Posted: Sat Feb 26, 2022 9:05 am
by answerhappygod
- The Value Of A Level Coupon Bond Is Given By The Formula Below A C 1 R 1 73 A Frittato R F 1 1 Show Th 1 (439.61 KiB) Viewed 49 times
The value of a level-coupon bond is given by the formula below: a C (1+r)*(1+73+-+ä frittato )r)? F + + (1+)(1+) Show that this formula can be simplified to: PV =C v=c-ratalot 1 r(1 + r)? + (1 + r) Hence, calculate the value of a bond worth K10,000 that was bought at 5% level-coupon bond and is maturing in 18 years' time.