Why is n = 16 and the PMT 37.5? once bond reached 8 years, the $1000 is accounted for then? Thank you
King Noodles’ bonds have a 7.5% coupon rate and a $1,000 par value.
Interest is paid semi-annually. The bond has a maturity of 8 years. If the (bond equivalent) yield on similar bonds is 6.6%, what is the value of King Noodles’ bonds?