Question
RG coffee house issued a $1000 par value bond that pays a 9 percent interest anually. the bond matures in 14 years and is currently
RG coffee house issued a $1000 par value bond that pays a 9 percent interest anually. the bond matures in 14 years and is currently selling at $1,120. you required rate of return is 8.5 percent.
a) compute the bonds expected rate of return
b) determine the value of the bond to you,given your required rate of return
c) should you purchase the bond,why?
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Personal Financial Planning
Authors: Lewis J. Altfest
2nd edition
1259277186, 978-1259277184
