Question
1. You are interested in one corporate bond that shows the following information: Face Value: $10,000 Interest Rate: 10% (per year) Maturity: 4 years from
1. You are interested in one corporate bond that shows the following information:
Face Value: $10,000
Interest Rate: 10% (per year)
Maturity: 4 years from today
Price Index: 120
If you decided to buy this bond, what is the market price you should pay for it? If necessary, round your answer to the nearest dollar. Please do not put "$" or "," in your answer. If your answer is $12,345.67, put 12346 for your answer.
2.
Please use the same information (as follows) to answer this question.
Face Value of the bond: $10,000
Interest Rate: 10% (per year)
Maturity: 4 years from today
Current Price Index: 120
If you decided to buy this bond at the current market price, what is the amount of annual interest you will receive? Please do not put "$" or "," in your answer. If your answer is $12,345.67, put 12346 for your answer.
3. Please use the same information (as follows) to answer this question.
Face Value of the bond: $10,000
Interest Rate: 10% (per year)
Maturity: 4 years from today
Current Price Index: 120
If you decided to buy this bond at the current market price, what is the rate (%) of return on your investment (ROI)? If necessary, round your answer to the first decimal point
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