Whatisthecashflowofa8-yearbondthatpayscouponinterestsemiannually,hasacouponrateof6%,andhasaparvalueof$100,000?
Question
Solution 1
The cash flow of a bond is made up of the periodic coupon payments and the par value returned at the end of the bond's term.
Here's how to calculate it:
- First, calculate the semiannual coupon payment. The annual coupon payment is the coupon rate times the par value. In this case, it's 6% of $1 Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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Whatisthecashflowofa8-yearbondthatpayscouponinterestsemiannually,hasacouponrateof6%,andhasaparvalueof$100,000?
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Whatisthecashflowofa8-yearbondthatpayscouponinterestsemiannually,hasacouponrateof6%,andhasaparvalueof$100,000?
Q1:What is the cash flow of a 8-year bond that pays coupon interest semiannually, has a coupon rate of 6%, and has a par value of $100,000?