Good morning,
Face value (principal): £1,000,000
Time to maturity:5 yearsCoupon rate: 5%
Market rate at issuance: 6%
Frequency of interest payments:annualInterest payment: £50,000
For the first period, they calculated a present value at market rate (6%) at £47,170
How to calculate that ? (page 591)
thanks:)
.