1:
Using financial calculator
Input: FV= 1000
PMT = 7.8%*1000 = 78
N = 4
I/Y = 6.5
Solve for PV as -1044.54
Price of the bond = $1044.54
2:
Using financial calculator
Input: FV= 1000
PMT = 5.4%*1000 = 54
N = 25
I/Y = 9.7
Solve for PV as -600.51
Price of the bond =$600.51
1. Kramerica Industries has issued a $1000 par, 7.8% coupon bond that matures in 4 years....
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