BOND VALUATION

Tutorial Question

The Hague Court Supplies Company has a $$5,000$ par value bond outstanding that pays $10$ percent annual

interest. The current yield to maturity on such bonds in the market is $14$ percent. Compute the price of the

bonds for these maturity dates:

a$)45$ years.

b$)25$ years.

c$)10$ years.

d$)1$ year.