1. What is the cash flow of a 6% coupon bond that pays interest annually, matures in 7 years, and has a principle of $1,000?
2. Assuming a discount rate of 8%, what is the price of this bond?
3. Assuming a discount rate of 8.5%, what is the price of the bond?
4. Assuming a discount rate of 7.5%, what is the price of the bond?© BrainMass Inc. brainmass.com June 3, 2020, 6:18 pm ad1c9bdddf
You will find the answer to this puzzling question inside...