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Homework answers / question archive / 1) 7 years ago, a company issued a 25-year bond at par value of 1000$
1) 7 years ago, a company issued a 25-year bond at par value of 1000$. The market rate at the time was 6%, and is now 7%. The bond yields semi-annual coupons. What is the price of the bond today?
2) Big House Nursery Inc. has issued 20-year $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 10%. The current price of the bond is ______?
3) Malek will save $1,000 a year at the beginning of every year starting in 2 years' time. His investment will earn 5%, compounded monthly. What will his investment be worth in 10 years' time?
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