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Use the following information for questions 18, 19 and 20. The information of a bond is given below Par/face value $ 1000 Coupon 10% Time
Use the following information for questions 18, 19 and 20. The information of a bond is given below
Par/face value | $ 1000 |
Coupon | 10% |
Time of maturity | 2 years |
18. If your opportunity cost of capital is 15%, how much you are willing to buy? a. $ 918.7 b. $ 850.5 c. $ 1,050.5 d. $ 1,000.0 19. If your opportunity cost of capital is 8%, how much you are willing to buy? a. $ 950.8 b. $ 890.5 c. $ 1,050.5 d. $ 1,035.7 20. If your opportunity cost of capital is 10%, how much you are willing to buy? a. $ 918.7 b. $ 850.5 c. $ 1,050.5 d. $ 1,000.0
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