Coupon Bond Calculator Help. After Tax Cost Of Debt For A Bond. 25 Yrs,7% Annual Coupon Rate, Selling For $804 Face Value $1000.?

Help. After Tax cost of debt for a bond. 25 yrs,7% annual coupon rate, selling for $804 face value $1000.? - coupon bond calculator

Why is MTP? Financial Calculator. Said's book was BE70. N = 25, PV =- 804, FV = 1000 1/year clear. 70 Why is MTP? THX

2 comments:

Anonymous said...

The book is good.

There is a relationship - not a loan.

The value of the bond is $ 1,000. It is the principal of 25 years to mature.

Do you have a coupon of 7%. This is the amount you pay each year. 7% $ 1,000 $ 70 is. This is the annual payment (of interest). No customer pays to maturity.

The $ 804 is the price you pay now. If the market interest rate of 7%, it should be for $ 1000 is for sell now. However, it sells for less because the interest rate market is probably a little more than 7% - so that they are the value of a bond rating of 7% discount rate, since 7% is not enough.

His problem is that you try not to use a financial calculator, such as with a pension - a bonus. It's actually a very simple calculation can be performed on a computer - $ 1000 multiplied by 7% = payment.

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