10 Suppose that you invested $8,000 in a corporate bond 12 years ago and have been...

Question

Question

10 Suppose that you invested $8,000 in a corporate bond 12 years ago and have been receiving annual payments of $680 on the b

Answer 1

Answer #1

$8103 is the minimum price.

Current market interest rate 28% Therefore present value of bond, PN > 680 (P/A, 87,3) + 8000(P/F,8%,3) z 680 x 2.577097 + 80

Answer 2

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