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4. Calculate the market prices of the following bonds, in dollars: A. The multiple-payment bond from Question 1-C of Assignment 2 Part B-1, which returned
4. Calculate the market prices of the following bonds, in dollars: A. The multiple-payment bond from Question 1-C of Assignment 2 Part B-1, which returned a payment of $6000 after one year, a payment of $10,000 after three years, and a (final) payment of $4000 after five years. The market interest rate is 8.55 percent. B. 1. A bond that returns a payment of $100.000 after ten years and a payment of $50.000 after 15 years. The market interest rate is 8.2 percent. 2. Why isn't the price of this bond equal to the sum of the prices of the bonds from Questions 1-A and 1-B? Is it higher, or lower? Why? Explain carefully. C. 1. A single-payment bond that returns a payment of $150,000 after 15 years, when the market interest rate is 8.2 percent. 2. Why isn't the price of this bond equal to the price of the bond from Part B-1 of this question, which returns total payments of the same amount? Is it higher, or lower? Why? Explain carefully. 4. Calculate the market prices of the following bonds, in dollars: A. The multiple-payment bond from Question 1-C of Assignment 2 Part B-1, which returned a payment of $6000 after one year, a payment of $10,000 after three years, and a (final) payment of $4000 after five years. The market interest rate is 8.55 percent. B. 1. A bond that returns a payment of $100.000 after ten years and a payment of $50.000 after 15 years. The market interest rate is 8.2 percent. 2. Why isn't the price of this bond equal to the sum of the prices of the bonds from Questions 1-A and 1-B? Is it higher, or lower? Why? Explain carefully. C. 1. A single-payment bond that returns a payment of $150,000 after 15 years, when the market interest rate is 8.2 percent. 2. Why isn't the price of this bond equal to the price of the bond from Part B-1 of this question, which returns total payments of the same amount? Is it higher, or lower? Why? Explain carefully
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