Solving for missing /different coupon payments
Fuji TV (フジテレビ) issues bonds with a $1,000 face value and a 20-year maturity. The bond makes semi-annual coupon payments of $60 each until the end of year 10. After that, the bond makes semi-annual coupon payments of $90 each until maturity. However, due to cash restraints, the firm makes no coupon payments on the bond in year one and year two, and instead pays these coupons at maturity. If investors require an 7.5% rate of return over the life of the bond, what is the bond’s value today?
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$1,497.98
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