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You are trying to help a friend Ky, to understand the bond market. He has several questions. Answer Ky's below questions. 1) If a bond
You are trying to help a friend Ky, to understand the bond market. He has several questions. Answer Ky's below questions. 1) If a bond with a 5 year, $100,000 face value, paying 4% semi-annual interest is sold when the market rate of interest is 6%, how much will Ky pay for the bond. The present value factor where i = 2% and n = 10 is .82035, and where i = 3% and n = 10 is .74409. The present value of an annuity factor where i = 2% and n = 10 is 8.98259 and where i = 3% and n = 10 is 8.53020
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