Bond Price
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An investor purchases a $1,000 par value bond that pays $60 interest each six-month period and has 8 years to maturity. The investor plans to hold the bond for 5 years and sell it in the market. The current required rate of return in the market is 14%, but is expected to drop to just 10% at the time of the sale due to projected falling interest rates. The price the investor is willing to pay for this bind is what?
© BrainMass Inc. brainmass.com December 24, 2021, 4:43 pm ad1c9bdddfhttps://brainmass.com/business/bond-valuation/bond-price-4159
$2.49