1. bond was recently quoted at 98. Its face is $1,000 and its coupon is 5%. It matures in 15 years.

A. FV = ?

rate = ?

PMT = ?

N = ?

B. Should you buy the bond if your discount rate is 6%? Why/why not?

C. If your discount rate is 4%, should you buy the above bond? Explain.

D. Suppose the quote for the bond was 101 rather than 98 and your discount rate is 4%. Should you buy the bond? Explain.

thank you :)