Explore BrainMass

Calculate bond value today

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 August 19, 2018, 11:00 pm ad1c9bdddf

Solution Summary

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