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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
7-2Â Â Â Â Â Â Is it true that the following equation can be used to find the value of a bond with N years to maturity that pays interest once a year? Assume that the bond was issued several years ago.
Â
Â
N
VB = ∑
Â
(1 + r )t          + (1 + r )N
Â
Â
Â
t=1
Â
Annual interest
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d
Â
Par value
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d
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