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Bond par value coupon interest rate years to maturity req. stated annual return a $1000 10% 12 8% b 1000 12 20 12 c 500
Bond | par value | coupon interest rate | years to maturity | req. stated annual return |
---|---|---|---|---|
a | $1000 | 10% | 12 | 8% |
b | 1000 | 12 | 20 | 12 |
c | 500 | 12 | 5 | 14 |
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.
1. The value of bond A is
2. the value of bond B is
3. The value of bond C is
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