Evaluate discount rate for the bond


Questions:

1. How much would you pay for a $ 100,000 Raytheon bond today given risk, interest rate, inflation (no math equasion

2. Based on the previous question, what would be your discount rate for this Bond? Use present value formula and show the work.

0.70     BETA
1.63     CURRENT RATIO
49.96   TOTAL DEBT TO EQUITY
3.30     SHORT RATIO
8.02 % PROFIT MARGIN
7.87%  RETURN ON ASSETS
20.38% RETURN ON EQUITY

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Finance Basics: Evaluate discount rate for the bond
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