Assume that a bond makes 30 equal annual payments of $1,000 starting one year from today. (This security is sometimes referred to as an amortizing…

Assume that a bond makes 30 equal annual payments of $1,000 starting one year from today.

(This security is sometimes referred to as an amortizing bond.)

If the discount rate is 3.5% per annum, what is the current price of the bond?

(Hint: Recognize that this cash flow stream is an annuity and that the price of an asset is the present value of its future cash flows.)

The post Assume that a bond makes 30 equal annual payments of $1,000 starting one year from today. (This security is sometimes referred to as an amortizing… appeared first on Empire Essays.


Assume that a bond makes 30 equal annual payments of $1,000 starting one year from today. (This security is sometimes referred to as an amortizing… was first posted on May 10, 2022 at 3:41 am.
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