Question
Assume a 1000 face value bond has a coupon rate of 6 percent, pays interest semiannually and has an eight year life. If investors are
Assume a 1000 face value bond has a coupon rate of 6 percent, pays interest semiannually and has an eight year life. If investors are willing to accept a 8 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
