Homework Answers
Information provided:
Present value= $1,149
Time= 8 years
Interest rate= 12%
The price at the end of each year is calculated by entering the below in a financial calculator:
PV= -1,149
N= 8
I/Y= 12
Press the CPT key and PMT to compute the price at the end of each year
The value obtained is 231.30.
Therefore, the price of the bond at the end of each year is $231.30.
In case of any query, kindly comment on the solution.
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