Valuing a Target Bond

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The writer considers a potential investor looking at one year bond which will mature on thousand dollars in a year retail chain Target. The purpose of the paper is to look at the different influences that impact on the way in investor should determine a fair price for that bond. The paper starts by considering influences such as the time value of money, then looks at the way in which the maturity value should be discounted and ends by calculating a fair price and comparing it to competitors; WalMart and Kmart. Three sources are cited in the bibliography this four page paper.