Explore BrainMass

Explore BrainMass

    Calculate bond value today

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Two-years ago, Trans-Atlantic Airlines sold a $250 million bond issue to finance the purchase of new jet airliners. These bonds were issued in $1000 denominations with an original maturity of 12 years and a coupon rate of 12%. Determine the value today of one of these bonds to an investor who requires a 14% rate of return on these securities.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:48 am ad1c9bdddf
    https://brainmass.com/business/bond-valuation/calculate-bond-value-today-360886

    Solution Summary

    The expert calculates the bond value for today using financial management.

    $2.19

    ADVERTISEMENT