Respuesta :
Market value of a $1,000 corporate bond that pays 6 percent interest when comparable bonds are paying 8 percent interest is $750.
Current yeild = annual coupon payment/ current market price
0.08= $1000*6%/ current market price
current market price = $60/0.08
current market price = $750.
A bond is a sort of security used in finance where the issuer owes the holder a debt and is required, depending on the terms, to repay the principal and interest on the bond at the maturity date. Interest is often paid at regular intervals.
An IOU-like debt security called a bond. Bonds are issued by borrowers to attract capital from investors ready to extend a loan to them for a specific period of time. When you purchase a bond, you are making a loan to the issuer, which could be a corporation, government, or municipality.
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