Suppose a 1000 face value bond has a coupon rate of 85, Ask an Expert

Economics

Suppose a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-yearly, and has an eight-year life. If investors are willing to take a 10.25 percent rate of return on bonds of same quality, what is the present value or worth of this bond?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9532735

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