super-coca-cola
New member
- Joined
- Jun 10, 2018
- Messages
- 3
Hi guys I have the following problem to solve! This question comes from a study guide and I'm trying to use a financial calculator to do but can't seem to get it right! Hope you can help me , here's question:
Company A issues a three-year bonds with a coupon rate of 10%, a face value of HK$20,000 and dividends paid once a year. At the time of issue, market investors required a return of 8%. According to the above terms, what is the market price of the bond?
Accord to the study guide the answer is : 21,030.83
but I don't know how to get to this answer!
My assumption is:
N: 3
I/Y : So far I've tried 10% , 8%, 18% and 108% (and it all came out wrong)
PMT: 2000
FV: 20000
I'm sure my assumption is wrong! Please help??
Thank you!!!
Company A issues a three-year bonds with a coupon rate of 10%, a face value of HK$20,000 and dividends paid once a year. At the time of issue, market investors required a return of 8%. According to the above terms, what is the market price of the bond?
Accord to the study guide the answer is : 21,030.83
but I don't know how to get to this answer!
My assumption is:
N: 3
I/Y : So far I've tried 10% , 8%, 18% and 108% (and it all came out wrong)
PMT: 2000
FV: 20000
I'm sure my assumption is wrong! Please help??
Thank you!!!