question archive You are considering the purchase of a $1,000 face value bond issued by ABC company
You are considering the purchase of a $1,000 face value bond issued by ABC company
Subject:BusinessPrice: Bought3
You are considering the purchase of a $1,000 face value bond issued by ABC company. The bond pays 9 percent coupon interest per year, with the coupon paid annually. The bond matures in 3 years. If the required rate of return (r subscript b) on this bond is 5 percent. What is the cuurent value of the bond (V subscript b)? (Round your answer to 2 decimal places)
