Question

1. As the financial manager of a bond investment fund Skweezem Hard and Wynn, you are provided with nearly enough information to determine which bonds you will purchase for your portfolio. Your group's required rate of return is 12%, as that is what similar issues are paying today in the market. All bond additions to your portfolio have a $1,000 par value that will be paid in 15 years. What is the price your group is willing to pay for each bond? That is, what is the present value of each bond?

Answer 1

See attached picture for answer and calculations.

Step-by-step explanation:

See picture.