Leigh Delight Candy, Inc., is choosing between two bonds in which to invest their cash. One is

Question:

Leigh Delight Candy, Inc., is choosing between two bonds in which to invest their cash. One is being offered from Hershey's and will mature in 8 years and pay $40 each quarter. The other alternative is a Mars' bond that will mature in 20 years and pay $20 each quarter. What would be the present value of each bond if the is 8 percent and each bond pays $1,000 at maturity?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...