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http://www.teachmefinance.com/bondvaluation.html Watch the video below on valuing bonds. It shows how to calculate a bonds value with an example of a $1,000 bond making $100
http://www.teachmefinance.com/bondvaluation.html
Watch the video below on valuing bonds. It shows how to calculate a bonds value with an example of a $1,000 bond making $100 annual payments, when the interest rate is 8%. Would there be a point (length to maturity) where you would prefer to hold a perpetuity paying $100/year over a bond with a $100 payment?
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