What is the value of a 20-year, 7% annual coupon bond if Kd equals 9%? What is the value if inflation increases 3%? What is the value if inflation decreases 3%? Show formulas and entries on a financial calculator.© BrainMass Inc. brainmass.com June 3, 2020, 6:20 pm ad1c9bdddf
In a calculator:
Number of periods = 20
Future value = 1000
annual payment = 1000*7% = ...
The value of inflation for annual coupons are determined. The value of the coupons if inflation increases is computed.