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problem: Your task for this module is to use the concept of present value to your selected company. Assume your company is selling a bond that will pay you 1000 dollar in one year from today. Consider that if your company has financial problems in one year you might not get your full $1000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full 1000 dollar for this bond. Given the concepts of the time value of money,

Select two other companies in the same industry as your company. One should be one that you would pay less for a 1000 dollar bond than you would from your SLP Company & another one that you would pay more for a $1000 bond from your company. Describe why you would pay more or less for their bonds.

Basic Finance, Finance

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