How to find value of zero-coupon bond?, Financial Management

Illustration 

Find out the value of zero-coupon bond when maturity value is Rs.1,00,000, discounting rate is 12%, and the period is 25. 

Then,     V    =  1548_zero coupon bond.png  

                  = 1,00,000 x 0.059

                  = Rs.5,900.

Posted Date: 9/10/2012 5:57:08 AM | Location : United States







Related Discussions:- How to find value of zero-coupon bond?, Assignment Help, Ask Question on How to find value of zero-coupon bond?, Get Answer, Expert's Help, How to find value of zero-coupon bond? Discussions

Write discussion on How to find value of zero-coupon bond?
Your posts are moderated
Related Questions
I just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. I also told that the dividends would grow continual

Valuing Debt Securities Securities which promise to pay its investors a stated rate of interest and return principal amount at the maturity date are known as debt securities.

The issuers of ALBS are the financial subsidiaries of automobile manufacturers, commercial banks and other independent finance companies and small financial insti

Debenture A kind of debt instrument that is not secured by physical any asset or collateral is known as debenture. Debentures are backed by the general creditworthiness and sta

The Rise of Derivative Market: In the 1980s, the process of liberalization and deregulation of the financial markets gained momentum when the British and American leadership l

Accounting Framework  - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies

Explain the term- quality of decisions Performance and business risk This is focussed on " quality of decisions ". The comparison of an organisations performance with t

Income Statement A formal statement of the parts used in determining an organization net income that is called profit and loss statement. The several categories reported

AThe project is expected to have an initial outlay of $200million and generate cash inflows of $64million for the next 12 yearssk question #Minimum 100 words accepted#

Ho can we estimate that firm is going to benefit from projec To calculate how firm is going to benefit from project we need to calculate whether firm is earning the required ra