XYZ Company has a $$10,000,3-$year,$5\%$ bond. The current market rate is $7\%.$ Interest is paid annually.

a$)$ Based on the rates presented above, do you expect the cash price of the bond to be more or less than the face value of the bond? Why?

b$)$ Calculate the cash price of the bond.

XYZ Company has a $$20,000,2-$year, $5\%$ bond. The current market rate is $12\%.$ Interest is paid quarterly.

a$)$ Based on the rates presented above, do you expect the cash price of the bond to be more or less than the face value of the bond? Why?

hi Calculate the cash price of the bond. $$ Cash price of bond

TABLE B$.3^{**}$ Present Value of an Annuity of $1$

$p=\frac{1-\frac{1}{(1+i{)}^n}}{i}$

$\backslash$table$[[,$Rate$],[$Perlods$,1\%,2\%,3\%,4\%,5\%,6\%,7\%,8\%,9\%,10\%$