PLEASE SHOW ALL WORK. THANK YOU !!2. a. A $1,000 bond has a 7.5 percen

QUESTION

PLEASE SHOW ALL WORK. THANK YOU !!2. a. A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond?b. If after six years interest rates are still 10 percent, what should be the price of the bond?c. Even though int¦
a) Price = $1,000 x 0.3855 $1,000 x 7.5% x 6.1446 Price = $385.50 $460.85 Price = $846.35 b) Price = $1,000 x 0.6830 $1,000 x 7.5% x 3.1699 Price = $683 $237.74 Price = $920.74 c)The price of the bond¦

hanged because certain time period passed. d) Price = $1,000 x 0.5584 $1,000 x 7.5% x 7.3601 Price = $558.40 $552.01 Price = $1,110.41

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