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Please help IBM 8% due in 5 years Assume Sl ,OOO Par or face amount Assume exactly 5years to matu } Cash Flows: o I

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IBM 8% due in 5 years Assume Sl ,OOO Par or face amount Assume exactly 5years to matu } Cash Flows: o I $40 2 40 3 40 7.25% $ 1,030.99 4 40 5 40 6 40 went to 8.5%? 7 40 8 40 9 40 $ 10 1,040 Cument Mati(et Interest rate for IBM Price of the bond today) Point Value 2 (What is the value of the IBM bond, iven above, if market rates instantaneous 2 / VAhat is the value of a zero couppo bond if that bond had 5 yrytvpatu and a YTM at 8.5%? Reminder, ou must co ound semi-annual

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