Question
a) If interest rates are 8%, what is the price of a 4-year bond with a face value of 100 and an annual coupon of
a) If interest rates are 8%, what is the price of a 4-year bond with a face value of 100 and an annual coupon of 7%? (10 marks)
b) If interest rates are 9%, what is the price of a 4-year bond with a face value of 100 and an annual coupon of 7%?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
