Question
1.Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 8.15%. If
1.Assume a par value of $1,000. Caspian Sea plans to issue a 13.00 year, annual pay bond that has a coupon rate of 8.15%. If the yield to maturity for the bond is 7.84%, what will the price of the bond be?
2.Assume a par value of $1,000. Caspian Sea plans to issue a 5.00 year, annual pay bond that has a coupon rate of 7.90%. If the yield to maturity for the bond is 8.20%, what will the price of the bond be?
3.
What is the value today of a money machine that will pay $2,577.00 per year for 16.00 years? Assume the first payment is made 8.00 years from today and the interest rate is 12.00%.
Pleaseeee Answer these questions by using a finance calculate and/or excel sheet.
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