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1 . The Penningtonl LOTPOTATION ISSUEd a NEW SETIES OI bonds on January 1, 14/4. THE bonds were sold at par ( $1, 000 ),
1 . The Penningtonl LOTPOTATION ISSUEd a NEW SETIES OI bonds on January 1, 14/4. THE bonds were sold at par ( $1, 000 ), have a 12 percent coupon , and mature in 20 years , Ol December 31 , 2003. Coupon payments are made semiannually ( on June 30 and December 3 1 ). a . What was the !'I'M Of Pennington's bonds on January 1 , 1974 D. What was the price of the bond on January 1 , 1979, 5 years later, assuming that the level of interest rates had fallen to 10 percent ?" C. On July 1 , 1997, Pennington's bonds sold for $915. 42 . What was the !'I'M at that date ? d. Now, assume that you purchased and outstanding Pennington bond on March 1 , 1997, when the going rate of interest was 15.5 percent . How large a check Must you have written to complete the transaction ?"
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