Calculate the fair present value of the following bonds, all of which have a 10 percent coupon rate (paid semiannually), face value of $ 1,000, and a required rate of return of 8 percent a The bond has 10 years remaining to maturity b The bond has 15 years remaining to maturity c The bond has 20 ye...

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Calculate the fair present value of the following bonds, all of which have a 10 percent coupon

Question:

Calculate the fair present value of the following bonds, all of which have a 10 percent rate (paid semiannually), of $ 1,000, and a required rate of return of 8 percent.
a. The bond has 10 years remaining to
b. The bond has 15 years remaining to
c. The bond has 20 years remaining to
d. What do your answers to parts (a) through (c) say about the relation between time to and present values?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...