Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
The value of the bond is $865.80.
What is a bond?
A bond is a debt instrument used to raise capital. Bondholders receive periodic interest payment. At the maturity of the bond, the bondholders receive the amount invested.
What is the value of the bond?
The value of the bond can be determined by calculating the present value of the bond. The present value is the sum of the discounted cash flows.
Present value = (60 / 1.08) + (60 / 1.08^2) + (60 / 1.08^3) + (60 / 1.08^4) + (60 / 1.08^5) + (60 / 1.08^6) + (60 / 1.08^7) + (60 / 1.08^8) + (60 / 1.08^9) + (60 / 1.08^10) + (1000 / 1.08^10) = $865.80
To learn more about present value, please check: https://brainly.com/question/25748668
Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
