www.EngineerInT... In this tutorial, we will reinforce your understanding of Bond Value. We will begin by defining Bond Value, discuss the general work flow, and then run through an example of something we may see on the exam.
There is a problem here I think. Where does 1500 dollar annual payment come from, 6% interest rate is never been used, who is buying and who is repaying the debt. Other videos are great but this one is not so. Can you check it and explain the example to me?
This also threw me for a loop at first. They are just paying 0.06*(25,000) annually * ( P/A,0.08,5) Should anyone else come across this archeological dig and also get stumped on a deceptively straightforward issue.
Don't know the 1st thing about bonds...erm.. I wonder, what the firm gets in return for getting into this debt ... guessing its not a loan scenario whereby they would be borrowing 25k at first or something
