
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 44
Graph the sensitivity of what a person should be willing to pay now for a 9%, $10,000 bond due in 10 years if there is a 30% change in (1) face value, (2) dividend rate, or (3) required nominal rate of return, which is expected to be 8% per year, compounded semiannually. The bond pays dividends semiannually.
b) If the investor did purchase the $10,000 face value bond at a premium of 5% (i.e., 5% above face value) and all your other estimates were correct, that is, 0% change, did he pay too much or too little How much
b) If the investor did purchase the $10,000 face value bond at a premium of 5% (i.e., 5% above face value) and all your other estimates were correct, that is, 0% change, did he pay too much or too little How much
Explanation
P is the present value of money, F is th...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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