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Math Help - Exercise Bond, cash flow, price, periods, value euro

  1. #1
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    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
    Last edited by pino1; March 10th 2013 at 01:37 PM.
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  2. #2
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    eindhoven
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    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
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  3. #3
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    eindhoven
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    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'
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