A bond matures in seven years from today. It pays an annual return of €50 and at maturity it pays back its initial cost
Posted: Tue Jan 18, 2022 12:58 pm
A bond matures in seven years from today. It pays an annual
return of €50 and at maturity it pays back its initial cost of
€1,000. If your annual return expectation from such an investment
is 3¼% how much at a maximum are you prepared to pay now to buy the
bond?
return of €50 and at maturity it pays back its initial cost of
€1,000. If your annual return expectation from such an investment
is 3¼% how much at a maximum are you prepared to pay now to buy the
bond?