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Intro The University of Calfoma has two bonds outstanding. Both issues have the sarce dedt rating. a face value of 51,000 and a coupon rate
Intro The University of Calfoma has two bonds outstanding. Both issues have the sarce dedt rating. a face value of 51,000 and a coupon rate of 5% Coupons are pais twioe a year Band A matures in 1 year, while bood B matures in 30 years. The maket interest rate for simits bonds is 10%. Part 1 - Astempt 1/S for 10 pts What is the price of bord an Part 2 B A Alteript 15 for 10pts. What a the price of band B ? Part 3 H A Attempt 1/5 for 10 pts. Now astume that yolics increate 40 3he What is the price of bond A
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