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(20 marks) V. (a) You have just purchased 10-year, $1,000 par value bond. The coupon rate on this bond is 10% 8% annually, with interest

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(20 marks) V. (a) You have just purchased 10-year, $1,000 par value bond. The coupon rate on this bond is 10% 8% annually, with interest being paid each 6 months. If you expect to earn nominal rate of return on this bond, how much did you pay for it? (PVIF8%, 10-0.4632, PVIF8%,20-0.2145, PVIFA 8%, 10-6.7101, PVIFA8%,20 9.81 81 ) (PVIF10%, 10-0.3855, PVIF10%,20-0.1486, PVIFA 10%,10-6.1446, PVIFA 10%,20-8.5 136) a

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