Corporate Bonds Valuation
June 12th, 2010 | 
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Question: (Hopefully) Simple question on stocks?
i read a book on stock valuation and it said that "with long-term corporate interest rates were at approximately 6.5% in 2007, a company with $54 EPS were worth approximately $830/share"
all i want to know is what these "long-term corporate interest rates" are and where i would find what it currently is
this rate applies to either stocks or Corporate Bonds
if this question does not make sense, please let me know so that i can edit it. thanks
Answer: Typically, stocks are valued in relation to the "risk-free rate." But this is always a government bond/note/bill -- not a corporate bond.
Good luck!
Introduction to Bonds
Posted in Corporate Bond Investing | 
Tags: business, corporate bonds valuation, finance, government, investing, stocks