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 October 17, 2018, 1:59 am ad1c9bdddf
The expert calculates the bond value for today using financial management.
What is the bonds price today?
One year ago a $1000 face value 6% coupon bond was selling for $918.93. Since then, the market return decreased by two percentage points. The bond pays interest semiannually and now has four years to maturity. The bond's price today is?View Full Posting Details