A 65 20000 bond with interest payable quarterly is due 30, Ask an Expert

Economics

A 6.5% $20,000 bond with interest payable quarterly is due 30 years from now. What is the present value of the bond if the purchaser desires to make a rate of return of 12% per year compounded monthly? (TIPS: Find effective interest rate based on the ROR desired by investors, this effective interest rate becomes simple interest rate of the bonds, related to face value. Draw CFD for bond. Use Present Worth Balancing Equation and solve for Face Value(V) )

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92202057

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