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1. A bond has a residual value of $ 10,000, an interest rate coupon of 6%, pays semiannual interest and has a maturity of 20
1. A bond has a residual value of $ 10,000, an interest rate coupon of 6%, pays semiannual interest and has a maturity of 20 years. Calculate the value of the bond if the required rate of return is 6%. 2. Determine how the previous result is affected if this time the required return is 8%. By what name is this type of bond known. 3. Consider the data from the previous problem only this time the interest is paid annually, what is the value of the bond.
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