# Exercise Bond, cash flow, price, periods, value euro

• Mar 10th 2013, 12:35 PM
pino1
Exercise Bond, cash flow, price, periods, value euro
Can someone help me with solving the following questions?

The following table shows information about three different bonds. All prices and cash flows are in euros, and all cash flows are received at the end of the relevant period. (cash flows in periods 1 to 3)

 BOND PRICE 1 2 3 A 95 100 0 0 B 90 10 110 0 C 85 10 10 110

Question A: What is the current value (price) of receiving one euro at the end of period 3?
Question B: Consider now bond D, which has the following characteristics. What is the current price of bond D?

 BOND PRICE 1 2 3 D ? 20 20 520

Question C: Consider now bond E. Considering what we know about risk and the time value of money, what is the maximum possible price of bond E?

 BOND 1 2 3 4 E 10 10 10 110
• Mar 15th 2013, 07:43 AM
Sansjovis
Re: Exercise Bond, cash flow, price, periods, value euro
I can solve this for you. coming monday i have some spare time at 17:01, would that be okay for you
F or doing this calculation you really need to give me some extra information
O r give me some info about what you did.
M akes it a
• Mar 15th 2013, 07:44 AM
Sansjovis
Re: Exercise Bond, cash flow, price, periods, value euro
a lot easier for me.

Or as famous Dutch saying goes: 'Wat ben jij toch een lakse vent'