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A development company has issued a 4-year corporate bond for $100,000 to raise money for a new project. The bond has annual dividends of $20,000
A development company has issued a 4-year corporate bond for $100,000 to raise money for a new project. The bond has annual dividends of $20,000 per year. And as usual, the bond holder will be paid the face value of the bond at maturity. The bond currently sells for a 10% discount. (A CFD will help!) 1. What is the ROR for the bond? 2. If a potential investor has a MARR of 15% will this be a good bond to buy at the 10% discount
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