How do you calculate intrinsic value aka expected price aka PV?PROBLEM:FYI bonds have a
How do you proportion natural estimate aka expected figure aka PV?
FYI bonds accept a
par estimate of $1,000. The bonds pay an 8% annual coupon and conquer grown in 11 years. i) Proportion the figure if the forego to ripeness on the bonds is 7%, 8% and 9%, respectively. ii) What is the exoteric forego on these bonds if the YTM on the bonds is 7%, 8% and 9%, respectively.
I interpret how to proportion the exoteric forego (PMT/PV) if the PV is fond, but how do you proportion it when it is not fond, enjoy in this tenor?