Reply
Mon 11 Mar, 2013 01:33 pm
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
--------------------------------------PERIODS
----------------PRICE ------- 1 --------- 2 ---------- 3
BOND A ------ 95 -----------100 ---------0 ---------0
BOND B ------ 90------------10 --------- 110 ------ 0
BOND C ------ 85------------10 ----------10 ------- 110
What is the current value (price) of receiving one euro at the end of period 3?
Who can help me? I don't know where to start...