A corporate bond with a face value of $1000 and a bond dividend (interest) rate of...
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A corporate bond with a face value of $1000 and a bond dividend (interest) rate of 4% per year payable quarterly. The bond was just issued and has a maturity date of 30 years from now. What is the present value of the bond to a potential buyer who desires a rate of return of 8% per year compounded quarterly? A corporate bond with a face value of $1000 and a bond dividend (interest) rate of 4% per year payable quarterly. The bond was just issued and has a maturity date of 30 years from now. What is the present value of the bond to a potential buyer who desires a rate of return of 8% per year compounded quarterly?
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To calculate the present value of the bond we can use the formula for the present value of a bond wh... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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