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5) What is the price of an annuity paying a coupon of $10 at the end of each year, every year for 10 years,

 

5) What is the price of an annuity paying a coupon of $10 at the end of each year, every year for 10 years, with the first payment received in one year if the relevant interest rate, expected to remain unchanged, is 7% per year? 6) A treasury bond provides 10 annual coupon payments of $100 each, one at the end of each year and has a Par (Face) Value of $1,000 paid at maturity in exactly 10 years. What is the price of this bond if the current annual interest rate on these types of bonds is 3%?

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