Purchase Solution

Present Value of a Corporate Bond

Not what you're looking for?

Ask Custom Question

Calculate the change in present value or price of an 8% (20 year) corporate bond given an increase in rate of inflation from 4% to 5%. Use a face value of $100 for your calculations.

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to calculate the change in present value or price of an 8% (20 year) corporate bond given an increase in rate of inflation from 4% to 5%.

Solution Preview

Please see the attached file.

Calculate the change in present value or price of an 8% (20 year) corporate bond given an increase in rate of inflation from 4% to 5%. Use a face value of $100 for your calculations.

We need to calculate how much is the bond's price by using the ...

Purchase this Solution


Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.