Bond prices depend on the market rate of interest, stated rate of interest, and time.

Read the requirements.

Requirement $1.$ Compute the price of the following $7\%$ bonds of Country Telecom.

a$.$ The price of the $$200,000$ bond issued at $74\mathrm{.}50$ is

Requirements

Compute the price of the following $7\%$ bonds of Country Telecom.

a$.$ $$200,000$ issued at $74\mathrm{.}50$

b$.$ $$200,000$ issued at $104\mathrm{.}25$

c$.$ $$200,000$ issued at $96\mathrm{.}25$

d$.$ $$200,000$ issued at $103\mathrm{.}25$

Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.