Formula used : P= C( 1-1/(1+i)^t / i ) + F / (1+i )^t ...

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Accounting

Formula used :

P= C( 1-1/(1+i)^t / i ) + F / (1+i )^t

Face bond is $1000

Q3:

The Pension Fund purchased 58 bonds issued by the Liquefied Gas Company through an intermediary. The interest rate on bonds is 10% annually, the discount rate or the required return is 12%, and the remaining period to maturity is 10 years. Required:

1- Calculate the price of the bond if it works, that the interest is paid annually.

2- Calculate the total value of the Bonds if the interest is annual

3- Calculate the price of the bond if the interest is paid semi-annually

4- Calculate the total value of the bonds in case the interest is semi-annual

Q4

Cox Pays 11% annual interest on the issued bonds, which are due to be repaid after 10 years. If the discount rate on similar bonds is 8%

1- Find the present value of the bond now?

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1- 1 (1+i)' i F P=0 + (1+i)' Formula used: P=C(1-1/(1+i)^t/i) +F/(1+i)^t Face bond is $1000 Q3: The Pension Fund purchased 58 bonds issued by the Liquefied Gas Company through an intermediary. The interest rate on bonds is 10% annually, the discount rate or the required return is 12%, and the remaining period to maturity is 10 years. Required: 1- Calculate the price of the bond if it works, that the interest is paid annually. 2- Calculate the total value of the Bonds if the interest is annual 3- Calculate the price of the bond if the interest is paid semi-annually 4- Calculate the total value of the bonds in case the interest is semi-annual 1 P=C (1+i)' i + F (1+i)' Formula used: P= C( 1-1/(1+i)^t/i) + F/(1+i)^t Face bond is $1000 Q4 Cox Pays 11% annual interest on the issued bonds, which are due to be repaid after 10 years. If the discount rate on similar bonds is 8% 1- Find the present value of the bond now

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