What would you pay for a TD bond that offers a $6\mathrm{.}5\%$ coupon $($paid semi$-$annually$),$ has face value of $$1,000,$ and matures in $8$ years if similar risk investments offer an expected yield of $8\%$ compounded semi$-$annually?

What happens to the price of the investment if it also gives you a lump sum of $$300$ at the beginning of year $5?$ How does your calculation change?

PV or FV

Click on $r$ nom and the single amount in this question

What would you pay for a TD bond that offers a $6\mathrm{.}5\%$ coupon $($paid semi$-$annually$),$ has face value of $$1,000$ and matures in $8$ years if similar risk investments offer an expected yield of $8\%$ compounded semi$-$ annually?

You can place up to $2$ targets