The Bank of Tokyo- Mitsubishi issues 100,000 bonds as part of its liquidity and interest risk management instrument. The bonds have a face value of $36,000 each, a bond interest rate of 12% per year payable semiannually, and a maturity date of 16 years. The current price of the bond is $69,662. Write the correct equation to determine if this bond should be purchased using the IRR method, assuming an investor has a MARR of 4% per year, compounded quarterly.

Question

Quizplus · Accepted Answer

The Answer is PW = 69,662 = 36,000 (P/F, i*%, 32) + 2160 (P/A, i*%, 32)

The Bank of Tokyo- Mitsubishi Issues 100,000 Bonds as Part