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Problem 13-08 Bond A has the following terms: . Coupon rate of interest (paid annually): 8 percent . Principal: $1,000 Term to maturity: Ten years

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Problem 13-08 Bond A has the following terms: . Coupon rate of interest (paid annually): 8 percent . Principal: $1,000 Term to maturity: Ten years Bond B has the following terms: Coupon rate of interest (paid annualy): 4 percent Principal: $1,000 Term to maturity: Ten years a. What should be the price of each bond if interest rate is 8 percent? Use Appendix and Appendix D to answer the question. Round your answers to the nearest dalla Price of bond A: $ Price of bond : $ b. What will be the price of each bond it, after four years have elapsed, interest rate is 8 percent? Use Appendix and Appendix D to answer the question. Round your answers to the nearest dollar Price of bond A: 5 Price of bond B: c. What will be the price of each bond it, after ten years have elapsed, Interest rate is 6 percent? Use Appendix Band Appendix D to answer the question. Round your answers to the nearest dollar Price of bond A: Price of bond : $

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