Answer Happy

Problem 13-09 Bond A has the following terms: Coupon rate of interest (paid annually): 8 percent Principal: $1,000 Term to maturity. Ten years Bond B has the following terms: 1 Coupon rate of interest (paid annually: 4 percent Principal: $1,000 Term to maturity: Ten years a. What should be the price of each bond if interest rate is 8 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Pride of bond A: $ Price of bond B:$ b. What will be the price of each bond if, after five years have elapsed interest rate is 8 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Price of bond A: 5 Price of bond B: $ c. What will be the price of each bond if, after ten years have elapsed, interest rate is 7 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar. Price of bond A: $ Price of bond B: $