An old 30 year life 1000 bond matures in 20 years and pays, Ask an Expert

Economics

An old 30 year life 1000$ bond matures in 20 years and pays semi-annual interest of 40$. what rate of return compounded semi annually does the bond yield if you pay 800$ for it and hold it until maturity assuming the analysis is made on the first day of a new semi-annual period. if the bond is callable 8 years from now at face value, what could an investor pay for the bond and be assured of receiving annual returns of 6% compounded semi annually? neglect the possibility of bankruptcy.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91708803

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