,period n = 7
interest i = 2%
Annual payment PMT = 4% * 10,000,000 = 400,000
Bond due FV = 10,000,000
PV = -11,294,397
Correct me if anything incorrect
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Duc Truong
Accountant
Westminster CA
United States
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Original Message:
Sent: 05-26-2022 10:56 AM
From: Mohamed Khan
Subject: find present value of bond
Present value OF BOND
400000*(Pvaf(2%,6yrs))+10400000*PVF(2%,7TH YEAR)
=(400000*5.6014)+(10400000*.87056)
=11294398
Original Message:
Sent: 5/25/2022 11:36:00 AM
From: Jeffin Neelankavil Johnson
Subject: find present value of bond
bond purchased 3 years back for $10,000,000
coupon rate 4%
market rate 2%
maturity period 10 years
find pv of bond.
please help me with calculation