Calculate the price of a bond with FV of $1,000, a coupon rate of 12 percent (paid
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Question:
Calculate the price of a bond with FV of $1,000, a coupon rate of 12 percent (paid semi-annually), and 8 years to maturity when;
A. kb= 14 percent
B. kb= 12 percent
C. kb= 10 percent
(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 1,289.71.)
What is the price of the bond with each k?
A)
B)
C)
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