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What will the first 40 years of coupon payments present value be? Several major companies (like Disney and AT&T) have issued Century Bonds. These bonds
What will the first 40 years of coupon payments present value be?
Several major companies (like Disney and AT&T) have issued "Century Bonds." These bonds pay regular semi-annual coupons, but do not mature until 100 years after they are issued. Some critics have stated that there is huge risk that you won't get the principal (face value) repaid because you just can't predict what will happen to the company in 100 years. For this question assume that the company has just issued a $1000 face value, 8% coupon bond with semi-annual paymentsStep by Step Solution
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