The current market rate for a bond is 8%. Calculate the selling price of the following bonds assuming annual interest payments:
A. 5% bond with 2 years until maturity.
B. 5% bond with 5 years until maturity.
C. 10% bond with 5 years until maturity.
Which bond is currently the most valuable? Why?© BrainMass Inc. brainmass.com October 9, 2019, 10:39 pm ad1c9bdddf
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Let the par value of all the bonds is $100.
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