这题应该怎么做啊 - Analysis of Financing Liabilities issues, hidden

hiphop101

 这题应该怎么做啊 - Analysis of Financing Liabilities

 

Question - Analysis of Financing Liabilities

Question - Analysis of Financing Liabilities
A firm issues a $10 Million bond with a 6% coupon rate, 4-year maturity, and annual interest payments when market interest rates are 7%

Q: If the market rate changes to 8%, the book value of the bonds at the end of the period will be:
A. $9,484,581
B. $9,661,279
C. $9,737,568
D. $9,745,959

这题应该怎么做啊

horseking

N=4; I/Y=7; PMT=10M*6%=.6M; FV=10M --> PV=-9,661,279

 

int expense = 9,661,279 * 7% = 676,290

 

coupon payment = 10M * 6% = 600,000

 

diff = 76,290

 

book value of the bonds at the end of the period :

=9,661,279 + 76,290 = 9,737,569.

 

the book value is not related to the current market yield