leightyf
Jan 30, 2010, 08:48 PM
FedEx is selling a bond that will pay you $1000 in one year from today. Keep in mind that FedEx might have financial difficulties in one year you might not get your full $1000 back. How much would you pay for this bond today? Take into consideration your own personal risk preferences, interest rates, inflation, and the probability your company will not be able to pay you back in one year.