Question

What will be the price of bond with face value Rs 1000 carrying a coupon of I 0% maturing in 3 years at I 0% premium on par value? Present value factor and PVAF at 10% for 3 years is .7513 and 2.4869 respectively .
826.43

1348.69

1075.12

1000

Answer 1

Answer:

PVIF formula

Using the formula for calculating the PVIF, the calculation would be $10,000 / (1 + . 05) ^ 5. The resulting PVIF figure from the calculation is "$7,835.26". The present value of the future sum is then determined by subtracting the PVIF figure from the total future sum to be received.

hey mate your option is wrong!!!!!

the right answer is"$7,835.26"

Explanation:

hope it helps ✌️