[svasylenko]

69%

[svasylenko]

50%

[svasylenko]

Hi,
Can you explain how you get 40?

[svasylenko]

Hi,
Redemption yieldis yield required by bond holders (or market rate).
n – number of years.
MV – selling price.
Hence,
MV of bond =Coupon rate*Face value/(1+yield)^1+….(1+Coupon rate)*Face value/(1+yield)^n.

Sole equasion.By trying and error, for example.

[svasylenko]

I have got 75. Unexpected. I expect near 60

[Author]

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