contestada

The price of a bond is equal to the Blank______. Multiple choice question. PV(coupon) plus PV(face value) PV(coupon) minus PV(face value) FV(coupon) plus FV(face value) FV(coupon) minus FV(face value)

Respuesta :

The price of a bond is equal to the PV(coupon) plus PV(face value).

What is the price of a bond?

The price of a bond is equal to the present value of the sum of all the cashflows of the bond. The cashflows of the bond includes coupons and face value.

For example, if a two-year bond with annual coupon of $20 and a face value of 1000 and a discount rate of 10%.

Price = (20 / 1.10) + (20 / 1.10²) + (1000 / 1.10²) = 861.16

To learn more about present value, please check: https://brainly.com/question/26537392

#SPJ1

Otras preguntas