jacobman0718
jacobman0718
05.12.2019 • 
Mathematics

Eddie believes that a bond he is purchasing today has an effective annual discount rate of 11%. the bond has 3 remaining coupons of $560 each. the first coupon will be paid in 20 months, 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 $15,000. what is the bond’s present value if eddie’s assumption of the discount rate is correct?
a. 10,336.9
b. 13,225.2
c. 14,680.0
d. 12,336.3
e. 11,5072

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