A museum owns a corporate bond issued by a retailer with face value at maturity of $100,000
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Question:
A museum owns a corporate bond issued by a retailer with face value at maturity of $100,000 and a coupon rate of 9% that will mature in June of 2013 exactly 10 years from today. In today's market, the interest rate for that bond is 6.3%. The bond pays interest every six months. If the museum were to sell the bond today, how much would it be worth?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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