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What would you pay for a $225,000 debenture bond that matures in 15 years and pays...

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Accounting

What would you pay for a $225,000 debenture bond that matures in15 years and pays $11,250 a year in interest if you wanted to earna yield of

a. 3%

B. 4%

C. 5%

Answer & Explanation Solved by verified expert
3.8 Ratings (602 Votes)
Annual interest rate 112502250005 a Yield 3 Computation Of Bond Price a Annual Interest Amount 1125000 2250005 b PV Annuity Factor for 15 Years3 1193794 c    See Answer
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Transcribed Image Text

What would you pay for a $225,000 debenture bond that matures in15 years and pays $11,250 a year in interest if you wanted to earna yield ofa. 3%B. 4%C. 5%

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