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PV of a bond's cash flows

Felix edited this page Jun 6, 2014 · 1 revision

A bond will make coupon interest payments of 70 HK$ (7% of its face value) at the end of each year and will also pay its face value of 1,000 HK$ at maturity in 10 years. If the appropriate discount rate is 6%, what is the present value of the bond's promised cash flows?

pv(r = 0.06, n = 10, fv = 1000, pmt = 70, type = 0)
[1] -1074