Posted: 2/27/2011 4:45:09 PM EDT
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Can anyone help me to understand how to solve this problem? I have looked up the data from the Treasury website "Calculate the value of each bond today after 5 years based on the 5 year treasury const matur nominal rate for the original 10y & 15 yr rate" What steps do I do take to value the bonds current value?  |
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Quoted: It's been about 8 years, but I did really well on it. Here's the first one. See if this lines up with the answers in the back. n = 20 i = 1.08 PV = leave blank PMT = (.0457)(1000) FV = 1000 B/E = E Gain/Loss = ABS(1000-PV) It's a 10 year bond, but it has only 5 years til matures. Doesn't that mean only 10 payment terms left (semiannual)? |
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Quoted:
Quoted:
It's been about 8 years, but I did really well on it. Here's the first one. See if this lines up with the answers in the back. n = 20 i = 1.08 PV = leave blank PMT = (.0457)(1000) FV = 1000 B/E = E Gain/Loss = ABS(1000-PV) It's a 10 year bond, but it has only 5 years til matures. Doesn't that mean only 10 payment terms left (semiannual)? Yeah, I missed that part. |
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first one when using a BAII + has the PV at 1113.64.
keystrokes are clear tvm (of course  )
2nd i/y-2 (semiannual payments) fv 1000 pmt- 22.85 i/y-2.16 n-10 cpt pv eta- I was helping a girl in my class the other day with her finance 1 night class, because she failed it when our class took it last year. She couldn't get any tvm questions right because she didn't clear tvm after every problem. |