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Q8. Calculate the following, but before calculating the answer for each, test yourself by determining (where applicable)
Posted: Sun Jul 03, 2022 1:14 pm
by answerhappygod
- Q8 Calculate The Following But Before Calculating The Answer For Each Test Yourself By Determining Where Applicable 1 (26.61 KiB) Viewed 11 times
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?