A firm has an issue of RM1000 par value bonds with a 12 stat

A firm has an issue of RM1,000 par value bonds with a 12% stated interest rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds of similar risk are currently earning 8%, how much the firm\'s bond will sell today ?

Solution

Price= 120PVIFA(8%,10)+1000PVIF(8%,10)= $1268.40

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site