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September 23, 2014

Homework Help: Engineering economy

Posted by Maria on Wednesday, October 1, 2008 at 1:43am.

General Electric issued 1000 debenture bonds 3 years ago with a face value of $5000 each and a bond interest rate of 8% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year, compounded semiannually, what is the present worth of one bond to an investor who wishes to purchase it today?

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