Calculate the price of the bond if the term to maturity of the bond is 10 years carrying a coupon rate of 10% with a not
Posted: Sat Feb 26, 2022 9:07 am
Calculate the price of the bond if the term to maturity of the
bond is 10 years carrying a coupon rate of 10% with a notional
value of INR 1000. Knowing the required yield on the bond is
11%?
Conditions are given as below:-
Coupon rate < Required Rate then Price less than par (Selling
at discount)•
Coupon rate = Required Rate the price equal par•
Coupon rate > Required rate then the price is more than par
(selling at Premium)
bond is 10 years carrying a coupon rate of 10% with a notional
value of INR 1000. Knowing the required yield on the bond is
11%?
Conditions are given as below:-
Coupon rate < Required Rate then Price less than par (Selling
at discount)•
Coupon rate = Required Rate the price equal par•
Coupon rate > Required rate then the price is more than par
(selling at Premium)