- Q8 Calculate The Following But Before Calculating The Answer For Each Test Yourself By Determining Where Applicable 1 (26.61 KiB) Viewed 10 times
Q8. Calculate the following, but before calculating the answer for each, test yourself by determining (where applicable)
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Q8. Calculate the following, but before calculating the answer for each, test yourself by determining (where applicable)
Q8. Calculate the following, but before calculating the answer for each, test yourself by determining (where applicable) if each bond is trading at a premium, discount, or at par. SHOW YOUR WORK a. What is the present value of $1,040 to be received in 1 year's time, with a 4% discount rate? b. What is the present value of a 1 year bond with a $1,000 par value, a 4% annual coupon, with a 6% discount rate? C. What is the present value of a 1 year bond with a $1,000 par value with a 4 % annual coupon, with a 2% discount rate?