Question
Everest Plc has issued corporate bonds with a par value of 1,500 and a coupon interest rate of 5%. The bonds are due to mature
Everest Plc has issued corporate bonds with a par value of 1,500 and a coupon interest rate of 5%. The bonds are due to mature in 6 years time (i.e. there will be 6 years of interest payments).
Calculate the value of one bond today to an investor with a 13% required rate of return (to the nearest euro)
| 1,500 | ||
| 6,033 | ||
| 1,020 | ||
| 1,367 |
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
