Online Learning
CLICK HERE TO ORDER YOUR ASSIGNMENT

New generation public utilities issued a bond with $1 000 par value that pays $30 in annual interest It matures

Question

new generation public utilities issued a bond with $1,000 par value that pays $30 in annual interest. It matures

in 20 years. your required rate of return is 4 percent.

a. calculate the value of the bond

b. how does the value change if your required rate of return (1) increases to 7 percent or (2) decreases to 2 percent?

Finance

New generation public utilities issued a bond with $1 000 par value that pays $30 in annual interest It matures