Year kd = 10% 0 kd $1,380.30 $1,000.00 = 15% k = 20% $766.23 1 $1,368.33 $1,000.00 $769.47 2 $1,355.17 $1,000.00 $773.37 3 $1,340.68 $1,000.00 $778.04 Time path of value of 4 $1,324.75 $1,000.00 $783.65 5 $1,307.23 $1,000.00 $790.38 a 15% Coupon, 6 $1,287.95 $1,000.00 $798.45 $1000 par value 7 $1,266.75 $1,000.00 $808.14 8 $1,243.42 $1,000.00 $819.77 bond when interest 9 $1,217.76 $1,000.00 $833.72 rates are 10%, 15%, and 20% 10 $1,189.54 $1,000.00 $850.47 11 $1,158.49 $1,000.00 $870.56 12 $1,124.34 $1,000.00 $894.68 13 $1,086.78 $1,000.00 $923.61 14 $1,045.45 $1,000.00 $958.33 15 $1,000.00 $1,000.00 $1,000.00