Question
1. What is the value of a $1,000 par value bond with annual payments of a(n) a. 10% coupon with a maturity of 10 years
1. What is the value of a $1,000 par value bond with annual payments of a(n)
a. 10% coupon with a maturity of 10 years and a 15% required return?
b. 8% coupon with a maturity of 10 years and a 8% required return?
c. 11% semiannual coupon with a maturity of 20 years and a 11% required return?
d. 8% semiannual coupon with a maturity of 20 years and a 9% required return?
2. What is the yield to maturity of a $1000 par value bond with a(n)
a. 10% annual coupon and 10 years to maturity and a $1,000 price?
b. 9.5% annual coupon and 20 years to maturity and a $788 price?
c. 5.0% annual coupon and 8 years to maturity and a $800 price?
Can I please get the answer with the formula so I can better understand? Thank you.
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