How do investors calculate the net present value of a bond? If the interest rate is 5%,

Question:

How do investors calculate the of a bond? If the interest rate is 5%, what is the present value of a that pays $1000 per year forever? Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...