s****i
发帖数: 66 | 1 1/2/2010,Parker Co. issued 6% bonds with a face value of $400,000 when
market interest rate was 8%. The bonds are due in ten years,and interest is
payable every June 60 and December 31. What's the total PV of this bond?
$400,000 at 4% after 20 periods + $12,000 at 4% for 20 periods.
我不明白的是为什么interest $12,000 要用4%的PV table 而不是3%的？ | u***s
发帖数: 88 | 2 market rate>coupon rate, the bond is sold at discount
market rate
FV*coupon rate=interest payments (in this case, it is $12K)
FV*market rate=interest
sold at discount, bond issuer receives less money and pay a fixed interest
sold at premium, bond issuer receives more money and pay a fixed interest
is
【在 s****i 的大作中提到】
: 1/2/2010,Parker Co. issued 6% bonds with a face value of $400,000 when
: market interest rate was 8%. The bonds are due in ten years,and interest is
: payable every June 60 and December 31. What's the total PV of this bond?
: $400,000 at 4% after 20 periods + $12,000 at 4% for 20 periods.
: 我不明白的是为什么interest $12,000 要用4%的PV table 而不是3%的？
| s****i
发帖数: 66 | 3 谢谢楼上的解释，但好像还是没说why use 4% but not 3%的问题。 | u***s
发帖数: 88 | 4 When discounting the interest payments back to present, you use the market
rate.
【在 s****i 的大作中提到】
: 谢谢楼上的解释，但好像还是没说why use 4% but not 3%的问题。
| g*********r
发帖数: 2847 | 5 coupon rate is only used for calculating how much is the coupon.
maketer interest rate is what you use to calculate PV, FV, etc. | d*********r
发帖数: 179 | 6 Stated rate(6%/2) is only used to calculate the cash payment ($12,000).
Once you get the cash payment, you use the market effective rate (8%/2) to
get the PV of the total interest payments.
Hope this helps. |
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