Determine the most reasonable price for this bond

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Reference no: EM131552298

You are thinking of purchasing a bond (face value $10,000). It matures in 3 years from today. The interest rate is 10% per year, and it is paid at the end of each year. The current financial situation of the company, however, is considered quite risky. So, you want to have 15% return on your investment. Determine the most reasonable price for this bond. (Round your final answer to the nearest dollar.) Do not put dollar sign ($) or a comma (,) in your answer. Put just numbers (for example, 1000 for $1,000)

Reference no: EM131552298

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