Bond value
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A major chemical manufacturer has experienced a market re-evaluation lately due to a number of lawsuits. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8 percent (paid semiannually). The par value of each bond is $1,000. The required rate has now risen to 16 percent. What is the current value of these securities? ____________.
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Solution Summary
This shows how to determine the current value of securities in a given situation.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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