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calculating the bond value using the calculator
Hi, i have a question from qbank and i like to how to calculate the bond future price using the BA 2 plus calculator
An investor buys a 20-year, 10% semi-annual bond for $900. She wants to sell the bond in 6 years when she estimates yields will be 10%. What is the estimate of the future price?
A) $1,079.
B) $1,000.
C) $946.
Your answer: A was incorrect. The correct answer was B) $1,000.
Since yields are projected to be 10% and the coupon rate is 10%, we know that the bond will sell at par value.
The values i input in the calculator are:
PV = -900
PMT = 100/2
n = 6*2
I/Y = 10/2
CPT FV = 820.41
The future value i get is $820.41. Actually is there anything wrong with the values i input? |
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发表于 2011-7-13 14:20
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