Question
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. Bond Par Value Coupon interest rate
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.
| Bond | Par Value | Coupon interest rate | Year to maturity | Required stated annual return |
| A | 1000 | 9% | 11 | 10% |
| B | 1000 | 13 | 20 | 11 |
| C | 500 | 13 | 5 | 15 |
The value of bond A is $. (Round to the nearest cent.)
The value of bond B is $. (Round to the nearest cent.)
The value of bond C is $. (Round to the nearest cent.)
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Standards Of Value
Authors: Jay E. Fishman, Shannon P. Pratt, William J. Morrison
2nd Edition
1118138538, 978-1118138533
