What should someone be willing to pay for each of the following bonds if the market...
What should someone be willing to pay for each of the following bonds if the market interest rate for borrowing and lending is 9 percent? A bond that promises to pay $12,000 in a lump-sum payment after 1 year.
Someone should be willing to pay $__. (Round your response to two decimal places.)
Homework Answers
Someone should be willing to pay=$12000*Present value of discounting factor(9%,1)
=$12000/1.09
=$12000*0.917431192
=$11009.17(Approx).
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