#24

bond sell at a discount? At a premium? 24) Bond valuation. Assuming that the bond in problem 23 matures in 10 years, what would be the market prices under the various required interest rate changes? (Hint. see Appen- dix G.) Bond valuation A 1 000 par value bond uith an annual 8 percent coupo n rate wil 35 23. Bond valuation. Hanover County Hospital plans to issue a tax exempt bond at an coupon rate of 6 percent with a maturity of 20 years. The par value of the bond is $1,000 (Hint: see Appendix G.) a. If required market rates are 6 percent, what is the value of the bond? b. If required market rates fall to 3 percent, what is the value of the bond? c. If required market rates fall to 10 percent, what is the value of the bond? d. At what required market rate (6 percent, 3 percent, or 10 percent) does the above bond sell at a discount? At a premium? 24 Bond valuation. Assuming that the bond in problem 23 matures in 10 years, what wouid be the market prices under the various required interest rate changes? (Hint: see Ap dix G.) pen