What is the value of bond for required a return


A bond with 5 years to maturity and a coupon rate of 6% has a par, or face, value of $20,000. Interest is paid annually. If you required a return of 8% on this bond, what is the value of this bond to you?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the value of bond for required a return
Reference No:- TGS0559034

Now Priced at $5 (50% Discount)

Recommended (92%)

Rated (4.4/5)