What is the value to an investor with given required return


A bond issued 10 years ago has a coupon rate of 8% and a face value of $1,000. The bond will mature in 15 years. What is the value to an investor with a required return of 12.5%?

A. $800

B. $750.86

C. $658.94

D. $701.52

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the value to an investor with given required return
Reference No:- TGS0675125

Now Priced at $5 (50% Discount)

Recommended (93%)

Rated (4.5/5)