how-would-you-adjust-the-calculation-of-present-value-for-a-bond-that-pays-inter

Question

How would you adjust the calculation of present value for a bond that pays interest semiannually?

Accepted Answer

Divide the annual interest rate by 2 and multiply the number of years by 2.

Answer

Use the annual interest rate and the number of years without adjustment.

Answer

Multiply the annual interest rate by 2 and divide the number of years by 2.

Answer

Divide both the annual interest rate and the number of years by 2.