How much would he or she be willing to pay for the bond

Reference no: EM132160321

Question: An investor is considering buying a 20-year corporate bond. The bond has a face value of $1000 and pays 6% interest per year in two semiannual payments. Thus the purchaser of the bond will receive $30 every 6 months in addition to $1000 at the end of 20 years, along with the last $30 interest payment. If the investor wants to receive 8% interest, compounded semiannually, how much would he or she be willing to pay for the bond?

Reference no: EM132160321

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