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    Finance problems/ Bonds

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    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
    https://brainmass.com/business/finance/calculate-bonds-selling-price-more-valuable-227412

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    Answer:
    Let the par value of all the bonds is $100.
    As ...

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    $2.19