Solved

Aggie Satellite Corp

Question 10

Short Answer

Aggie Satellite Corp. issued 10,000 debenture bonds with a face value of $32,000 each and a bond interest rate of 14% per year, payable quarterly. The bonds have a maturity date of 13 years. If the inflation- free interest rate is 17% per year, and the inflation rate is 7.5%, what is the present worth of one bond to a person who wants to purchase it?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions