Business, 09.09.2020 19:01 zaheema786ovxirt
Rocky believes that a bond he is purchasing today has an effective annual discount rate of 15%. The bond has 8 remaining coupons of $700 each. The first coupon will be paid in 1 month, and each subsequent payment will be one year after. On the date of the last coupon payment the bond will pay out a face value of $10,000. What is the bonds present value of Rocky’s assumption of the discount rate is correct?
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Rocky believes that a bond he is purchasing today has an effective annual discount rate of 15%. The...
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