Present value or worth of this bond, Business 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?

Posted Date: 3/28/2013 4:15:01 AM | Location : United States







Related Discussions:- Present value or worth of this bond, Assignment Help, Ask Question on Present value or worth of this bond, Get Answer, Expert's Help, Present value or worth of this bond Discussions

Write discussion on Present value or worth of this bond
Your posts are moderated
Related Questions
The following data show the interest rates on 4 randomly chosen personal loans (in percents): 6.1, 5.7, 11.1, 9. Calculate the standard deviation of the sample of interest rates. (

You are evaluating a project in the country of Expropriationstan. You estimate end-of-year cash flows as follows. Assume your discount rate for evaluating projects of this sort in

What is exceptional supply curves

Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 s share. The expected growth rate in dividends is 8 percent. a. What is the needed rate of retu

It commonly refers to the combination of commercial banking and investment banking. It is a supermarket for both wholesaler n retailer financial services as it offers a huge range

Ask question critically evaluate the two main utility theories #Minimum 100 words accepted#

How does population growth produce development? The impact of population growth depends upon the form: • By net migration. When the increase into population is highly skill

Draw a Supply or Demand Diagram A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due  largely to increases in the price of energy and food

Do policies that work in one country always work in another? Less developed countries are similar but diverse in terms of history, institutions, culture and governance and man

Explain about the characteristics required in a risk owner. To be effective within their role, a risk owner’ requirements are as follows: a. Adequate information regarding a