TIME VALUE OF MONEY

Time Value of Money

Time Value of Money

Answer 1.

I would pay $ 1700 as the present value of the bond today. The interest rate and the inflation rate are fluctuating, while there is a very little probability that company will fail to pay because the financial performance of the company is good. Sale and purchase of bonds of different companies at market price, which may differ significantly from nominal. If the nominal price is determined at the time of issuance of the security issuer, the market price of bonds is determined as a result of trades on the exchange. ...