Market Value: Market Value vs: Carrying Value: The Bond Investor s Dilemma
If the market interest rate for similar bonds is 6%, the bond’s price can be calculated by discounting the future cash flows at the 6% market rate. The present value of the annual $50 coupon payments and the $1,000 principal would be less than the… Read More »Market Value: Market Value vs: Carrying Value: The Bond Investor s Dilemma