Question: You buy an 8% annual coupon bond that has a 15 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning (buy) price of the bond?© BrainMass Inc. brainmass.com June 4, 2020, 2:03 am ad1c9bdddf
This solution is provided within an Excel spreadsheet which lays out the problem neatly and provides all of the required formulas in a clear manner.