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You purchased a $10,000.00 face value commercial bond for $9000.00 on June 1, 2007. The bond pays $500.00 interest at the end of each six months. It is now June 1, 2008. Thus, you have already received two $500.00 payments. The bond matures in five more years on May 31, 2013.

1) What return (interest rate) are you earning on your bond?

2) What is the bond worth today, if 8% is an acceptable value for MARR?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9473419

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