What is the present value of bond

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The creditors, including yourself, have agreed to a postponement of the next 3 interest payments (otherwise, the next interest payment would have been due in 1 year). The remaining interest payments, for Years 4 through 6, will be made as scheduled. The postponed payments will accrue interest at an annual rate of 5% and they will then be paid as a lump sum at maturity 6 years hence. The required rate of return on these bonds, considering their substantial risk, is now 24%. What is the present value of each bond?

Reference no: EM132686843

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