What is the present value of investment in rrsp

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Two years ago, you bought the strip (you will only receive the coupon payments)

-$4,039

-$4,073

-$4,373

-$4,288

Problem 1: from some bonds for your RRSP. The $10,000 face value Government of Alberta Bond, matures 10 years from the date of original issue (so eight years from today). The original coupon rate on this Government of Alberta Bond was 6% per annum, with semi-annual coupons.
Your RRSP is just about to receive the fourth payment of those semi-annual coupons. Market interest rates have subsequently fallen, and the comparable interest rate for this bond today would be 4% per annum. What is the present value, today, of your investment in your RRSP

Reference no: EM133009541

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