A $10,000 corporate bond has a 4% stated interest rate making the semiannual interest payments $200 for each half year period. The bond has eight years to maturity. If current market rates for interest are 3% per year, what should you pay for this bond?

Answer rating: 100% (QA)

To determine the price you should pay for the bond we need to calculate its present value Heres how ... View the full answer