8 A $1,000 bond has a 4 5 percent coupon and matures after ten years If current interest rates are percent, what should be the price of the bond Assume that the bond pays Interest annually Use Appendix B and Appendix D to answer the questlon Round your answer to the nearest dollar $ If after six years interest rates are still 8 percent, what should be the price of the bond Use Appendix B and Appendix D to answer the question Assume that the bond pays interest annually Round your answer to the nearest dollar Even though Interest rates did not change in a and b, why did the price of the bond change The price of the bond with the longer term Is Select w than the price of the bond with the shorter term as the Investors Will collect the Select y Interest payments and recelve the principal within a longer period of time Change the interest rate in a and b to 4 percent and rework your answers Assume that the bond pays interest annually Round your answers to the nearest dollar Price of the bond (ten years to maturity) $ Price of the bond (four years to maturity) $ Even though the Interest rate Is 4 percent in both calculations, why are the bond prices different The price of the bond with the longer term Is Select w than the price of the bond with the shorter term as the Investors will collect the Select wInterest payments for a longer perlod of time

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8. A $1,000 bond has a 4.5 percent coupon and matures after ten years. If current interest rates are & percent, what should be the

8. A $1,000 bond has a 4.5 percent coupon and matures after ten years. If current interest rates are & percent, what should be the price of the bond? Assume that the bond pays Interest annually. Use Appendix B and Appendix D to answer the questlon. Round your answer to the nearest dollar. $

If after six years interest rates are still 8 percent, what should be the price of the bond? Use Appendix B and Appendix D to answer the question. Assume that the bond pays interest annually. Round your answer to the nearest dollar.
Even though Interest rates did not change in a and b, why did the price of the bond change? The price of the bond with the longer term Is [Select w] than the price of the bond with the shorter term as the Investors Will collect the [Select y] Interest payments and recelve the principal within a longer period of time.
Change the interest rate in a and b to 4 percent and rework your answers. Assume that the bond pays interest annually. Round your answers to the nearest dollar. Price of the bond (ten years to maturity): $ Price of the bond (four years to maturity): $ Even though the Interest rate Is 4 percent in both calculations, why are the bond prices different? The price of the bond with the longer term Is Select- w]than the price of the bond with the shorter term as the Investors will collect the [Select wInterest payments for a longer perlod of time.