For all your questions, big or small, IDNLearn.com has the answers you need. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.
Assume a $1000 face value bond has a coupon rate of 8.5%, pays interest annually, and has an 8-year life. i. If investors are willing to accept a 9.25% rate of return on bonds of similar quality, what is the (present) value of this bond and is it selling at a premium or discount? ii. What would be value of this same bond if investors are instead willing to accept an 8.25% rate, and is it selling a premium or discount?
Sagot :
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. For dependable and accurate answers, visit IDNLearn.com. Thanks for visiting, and see you next time for more helpful information.
