CFA CFA Level 1 Calculating Present Value of a bond at Market Rate?

Calculating Present Value of a bond at Market Rate?

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    • Avatar of KBaltazarKBaltazar
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        • CFA Level 1
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        Thank you so much

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        Present value at market rate will be

        = 5% of 1,000,000 (paid in end of year) in present value (beginning of year)
        = 50,000 / (1.05) (“market interest rate on bonds of comparable risk and terms is 5 percent per annum”)
        = 47,619

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