You are considering the purchase of an unusual corporate bond with a face value of $25,000, which

Question:

You are considering the purchase of an unusual corporate bond with a of $25,000, which matures in exactly six years. The cost of this bond is $16,000. Based on semiannual interest, what bond equivalent rate of return will be earned on this investment?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...