contestada

What is the approximate market value of a bond that pays $60 interest each year if comparable interest rates have dropped to 5 percent

Respuesta :

The approximate market value of such a bond based on the interest pay year and the drop in comparable interest rates is $1,200.

How can the bond's market value be found?

The value of the bond can be found as:

= Interest payment per year / Decrease in interest rates

Solving gives:

= 60 / 0.05

= $1,200

Find out more on bond market value at https://brainly.com/question/17284865

#SPJ1