Bear Corporation issued 20 year bond 5 years ago. The bonds have a contract rate of 12 percent with interest paid semiannually and a par value of $1,000. If you require a return of 14 percent on these bonds, how much would you pay for one these bonds today?© BrainMass Inc. brainmass.com June 3, 2020, 11:31 pm ad1c9bdddf
Semi Annual Payments = 12%/2 x 1000 = $60
PV of $60 paid semi annualy at 14% interest rate =
PVoa = ...
The expert examines Bear Corporation issued over 2 year bonds 5 years ago.