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Pay $4,000 for a bond. The bond pays 4,500 at the end of 2 years with a 10% coupon (interest) paid semi-annually (every

Posted: Sat Feb 19, 2022 2:31 pm
by answerhappygod
Pay $4,000 for a bond. The bond pays 4,500 at the end of 2 years
with a 10% coupon (interest) paid semi-annually (every 6 months).
What is the present value of the bond? Is this a good deal since
you are paying $4,000?