What would you pay for a $225,000 debenture bond that matures in 15 years and pays...

60.1K

Verified Solution

Question

Accounting

What would you pay for a $225,000 debenture bond that matures in15 years and pays $11,250 a year in interest if you wanted to earna yield of

a. 3%

B. 4%

C. 5%

Answer & Explanation Solved by verified expert
3.8 Ratings (602 Votes)
Annual interest rate 112502250005 a Yield 3 Computation Of Bond Price a Annual Interest Amount 1125000 2250005 b PV Annuity Factor for 15 Years3 1193794 c    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What would you pay for a $225,000 debenture bond that matures in15 years and pays $11,250 a year in interest if you wanted to earna yield ofa. 3%B. 4%C. 5%

Other questions asked by students