4. Betty and Bob purchase an 8 year coupon bond with face and redemtion value of...

Question

Question

4. Betty and Bob purchase an 8 year coupon bond with face and redemtion value of $10,000 and a coupon rate of 12% per annum p

Answer 1

Answer #1

Price of the bond = present value of coupon payments + present value of face value PMT*(1-(1/(1+r^n)))/r+(face value/(1+r)^n

Answer 2

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