MGFD70H3 Study Guide - Final Guide: Xdi, W&W, Capital Structure
Document Summary
,973 owe to the bank after 3 years. ,975 owe to the bank after 2 years. Using approximation formula and the above equation r = ytm = 14% The following time line illustrates the years to maturity of the bond. Use the following procedure to determine the bond price. Find the price of the bond on july 1, 2030. Add the coupon , to the bond price to get the total value (tv) of the bond on the next payment date. Discount this total value back to the purchase date. This breakdown affects your taxes and those of the seller. Of this amount = (1/3) represents accrued interest, and . 72. Effective d1 is (4. 7411/4. 4)-1 = 7. 75% more than the nominal dividend. Price of the stock will rise by ,818,182/400,000. Let i be the maximum price tcwc should be willing to pay for the machine. The maximum price tcwc pay for the machine is ,775. 56.
