A Company issues 844 bonds, each with face value of R1147, a yearly bond rate of 100*0.111% and the bonds matures in 3 years. They decided to market it at R869 to get the money in quickly at time 0. What is the PV of the bond to the company, if they discount their cash flow at the inflation rate of 100*0.076%.

Answer rating: 100% (QA)

To calculate the present value PV of the bond to the company we need to consider the discounted valu... View the full answer