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Calculate the price of a bond at Par, above par & below par Bond No. 1: A $300,000 20year, 8% bond. Interest payable 2X per

Calculate the price of a bond at Par, above par & below par

Bond No. 1:

A $300,000 20year, 8% bond. Interest payable 2X per year. Market rate is 8%

Bond No. 2:

A $200,000, 10 year, 10% bond, interest is payable annually. Market rate is 9%

Bond No. 3:

A $100,000 5 year, 8% bond, interest payable 3 X per year, Market rate is 12%

For each bond, you are to calculate what the bond should sell for.

Create the Effective interest table for each of these three bonds.

You must show your calculations.

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