Rush Group wants to sell $25 million (Face Value) in three year bonds and receive $24 million for them today. If interest rates are 7.56%, what must the coupon rate be?
Could you please post this solution as you are doing it on a financial calculator. (ex: n= i/y= pv= pmt= fv= ) I know that n=6 and i/y=7.56/2 and fv=1000 but I don't know what pv and I know you are supposed to solve for pmt multiply that by 2 and divide that by 1000 to get the coupon rate.
What is the present value (pv)?© BrainMass Inc. brainmass.com June 3, 2020, 6:39 pm ad1c9bdddf
The solution explains the correct inputs for a financial calculation to arrive at the correct answer.