Discuss importance of the time value of money concepts

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1. Calculate the value of a bond that matures in 17 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 8 percent.

2. Discuss the importance of the time value of money concepts, including compounding (future value), discounting (present value), and annuities. Why would you as an organization leader need to understand these concepts?

Reference no: EM131957349

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