Question
( Bond valuation ) ExxonMobil 20-year bonds pay 6 percent interest annually on a $1,000 par value. If bonds sell at $945, what is the
(Bond valuation) ExxonMobil 20-year bonds pay 6 percent interest annually on a $1,000 par value. If bonds sell at $945, what is the bonds expected rate of return? Please answer it without a financial calculator or Excel.
Possibly with this formula: PV= PMT x ((1-(1+r)^-n)/(r)) + Face Value x (1/(1+r)^n)
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Trends In Financial Decision Making
Authors: Cees Van Dam
1978 Edition
9020706926, 978-9020706925
