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Assuming that the current interest rate is 2 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of
Assuming that the current interest rate is 2 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $20,000. What happens when the interest rate goes to 3 percent? What happens when the interest rate goes to 1 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 2%-$ 1811452 PV at an interest rate of 3%-$ 1725218 The present value alls when the interest rate rises to 3 percent. PV at an interest rate of 1%-$1902931 The present value rises when the interest rate falls to 1 percent
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