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    If the company were to issue 10-year bonds with a face value of $100,000 and the market rate of interest is 10%, what would the proceeds from the sale if the bonds were zero-interest bonds?

    What would be the proceeds if the annual interest payments did not begin for 5 years and the stated rate of interest were 10%?

    What would be the proceeds if the bonds paid interest annually for 10 years at 10%?

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    https://brainmass.com/business/bond-valuation/issuing-year-bonds-63411

    Solution Preview

    If the company were to issue 10-year bonds with a face value of $100,000 and the market rate of interest is 10%, what would the proceeds from the sale if the bonds were zero-interest bonds?

    Since the bond price is not told in this question, we assume that the bonds are sold at P totally.
    Future value = 100,000
    Annual payment = 0
    Number of periods = 10
    Interest rate= ...

    Solution Summary

    If the company were to issue 10-year bonds with a face value of $100,000 and the market rate of interest is 10%, what would the proceeds from the sale if the bonds were zero-interest bonds?

    $2.19

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