Question
Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an eight-year life. If investors are willing to
Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an eight-year life.
If investors are willing to accept a 10.8 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? (Round final answer to nearest dollar amount.)
| Present value | $Type your answer here |
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Core Concepts Of Accounting Information Systems
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
11th Edition
9780470507025, 0470507020
