Is the Excel available to use this equation at exam ? What does (nper) stand for in equation? i wanna know how he gets (nper )
nper is number of periods
Why it is 5 ? The question did not specify remaining years to maturity
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Read the question.
annual coupon.
It matures in August 2007.
Settlement date is December 2002
Step 1) asks you to calculate the PV at the beginning of the current coupon period for the settlement date.
Settlement date is December 2002 so the current coupon period will begin in August 2002.
That’s 5 years (August 2002 to August 2007)
Thanks for the detailed explanation
Got it now
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