![]() ![]() Say, for example, that you expect to receive $100 in 5 years. Present value adjusts the value of a future payment into today’s dollars. BOND FINANCE CALCULATOR PLUSTo compute the value of a bond at any point in time, you add the present value of the interest payments plus the present value of the principal you receive at maturity. If Acme has a lower rating, the company will have to offer a rate higher than 6% to attract investors. IBM has a high credit rating and offers a 6% interest rate.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |