What price would be willing to pay for bond today


You are offered a zero coupon bond worth $10,000 in face value 20 years from now. Assume that you believe inflation over this time period would average 1.75% per year and that you believe the stock market might yield a 10% per year return, but would also have a 6% risk premium over this bond. What price would you be willing to pay for this bond today?

Request for Solution File

Ask an Expert for Answer!!
Mechanical Engineering: What price would be willing to pay for bond today
Reference No:- TGS0742287

Expected delivery within 24 Hours