Business, 03.07.2019 12:00 ImmortalEnigmaYT
An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold the bond only for 10 years, at which time she will sell it in the marketplace. she requires a 12 percent annual return but believes the market will require only an 8 percent return when she sells the bond 10 years from now. assuming she is a rational investor, how much should she be willing to pay for the bond today
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An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months....
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