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Present Value of Bond: Two years ago Barton's CFO decided that new investments were needed for the athletic facilities at the School. To meet the
Present Value of Bond: Two years ago Barton's CFO decided that new investments were needed for the athletic facilities at the School. To meet the needs, $5,000,000 in 12 -year bonds were issued to upgrade all the athletic complexes, along with all new HVAC and mechanical systems. The $1000 par bonds would be paid back semiannually at an annual coupon rate of 6%. Similar bonds today in the market are now going for a yield of 5.4\%. What is the present value of a Barton's Bond? $995.01 $1025,45 $1045.90 $1055.47
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