Type the Excel formula that prices a 5.2 %, $1,000-par, 10-year semi-annual bond at a 6 % market yield, showing each conversion inside the call.
Type the Excel formula that prices a 5.2 %, $1,000-par, 10-year semi-annual bond at a 6 % market yield, showing each conversion inside the call.
Answer
=-PV(0.06/2,10*2,0.052*1000/2,1000)
940.49. Rate 0.03, nper 20, pmt 26, fv 1,000 — negated because PV returns the opposite sign to the flows.
Bigel, Introduction to Financial Analysis (CC BY 4.0) §12.4–12.5 — annuity-plus-lump shape only; OpenStax Principles of Finance §10.2, 10.5 — reference only for PV/PRICE; original bonds