Determine the value of a $1,000 denomination Bell South bond with a 7 percent coupon rate maturing in 20 years for an investor whose required rate of return is:
a. 8 percent
b. 7 percent
c. 5 percent
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Determine the value of a $1,000 denomination Bell South bond with a 7 percent coupon rate maturing in 20 years for an investor whose required rate of return is:
a. 8 percent
b. 7 percent
c. 5 percent
Pv or current price of the bonds would be 901$ for a 1000$ for b and approximately 1251$ for c. your coupon payment is 70$ (I assumed annual payment) maturity in years 20 and face value of 1000 and formula PV = [ S CFt/(1 + I)t] + [FV / (1 + I)t]
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