If the required rate of return in the market is 5 per annum


Assuming that a company pays $50 interest each 6 months on its bonds (semi-annual), what would be the present value of these bonds (market value) if the required rate of return in the market is 5% per annum and the bonds have 15 years left to maturity. Assume a face value (maturity value) of $1,000.

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Finance Basics: If the required rate of return in the market is 5 per annum
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