Did I calculate accreted value right?
Bond is priced to yield 7% and sold at a discount of 16.84 in 25 Years. 100-12.84 = 83.16. 83.16/25=3.2 = the accretion
The accreted value at Year X is then [16.84(1.07^X)]+(3.2x)=Accreted Value of a 0 Coupon
Bond is priced to yield 7% and sold at a discount of 16.84 in 25 Years. 100-12.84 = 83.16. 83.16/25=3.2 = the accretion
The accreted value at Year X is then [16.84(1.07^X)]+(3.2x)=Accreted Value of a 0 Coupon
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