Hi guys, not asking you to work this out. I just want to know which figure is for the coupon payment. Is it the 14% or 15.3%?
Suppose that you are considering investing in a debt security that promises to pay 15.3% p.a semi-annually in arrears for 6 years. What is the value of this security if its yield is 14% and its face value is $10,000?
Is it the 15.3% or the 14% for the coupon payment (PMT)?
Help is appreciated.
Suppose that you are considering investing in a debt security that promises to pay 15.3% p.a semi-annually in arrears for 6 years. What is the value of this security if its yield is 14% and its face value is $10,000?
Is it the 15.3% or the 14% for the coupon payment (PMT)?
Help is appreciated.