What would you pay for a $210,000 debenture bond that matures in 15 years and pays $10,500 a year in interest if you wanted to e

Question

Olegator [25]

2 years ago

13

What would you pay for a $210,000 debenture bond that matures in 15 years and pays $10,500 a year in interest if you wanted to e

arn a yield of:?

Mathematics

1 answer:

Hoochie [10] · Answer 1 · 2022-03-28T12:55:58+03:00

<span>Let's say you wanted to earn a yield of 8%. $210,000 x .31524 = $66, 200.4 +$10,500 x 8.55948 = $89, 874.54 Use the tables to find .31524 (which is 8% @ 15 periods for present value of 1) and 8.55948 (which is 8% @ 15 periods for present value of an ordinary annuity of 1) You would pay a total of $156, 074.94</span>