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Thank you so much for this articulated explanation 😀
thank you! my professor assumed we know how to do this on our own with the calculator :( youre the best!
Glad I could help! Learning to use that BAII Plus is the secret sauce for Intro to Finance!
how did you know the bond was originally sold for 1,000?
It's just an assumption you have to memorize. If the bond's present value is expressed as $103, the bond's face value is $100 and if the bond price is expressed as $1,045 or $965, then the bond's face value is $1,000
Thanks
Glad to help
Thank you so much for this articulated explanation 😀
thank you! my professor assumed we know how to do this on our own with the calculator :( youre the best!
Glad I could help! Learning to use that BAII Plus is the secret sauce for Intro to Finance!
how did you know the bond was originally sold for 1,000?
It's just an assumption you have to memorize. If the bond's present value is expressed as $103, the bond's face value is $100 and if the bond price is expressed as $1,045 or $965, then the bond's face value is $1,000
Thanks
Glad to help