Midland Oil has $1,000 par value bonds outstanding at 8 percent interest

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Midland Oil has $1,000 par value bonds outstanding at 8 percent interest

Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is:

A. 7 percent.
B. 10 percent.
C. 13 percent.

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Answer 1

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Answer #1

Assignment 5 Q1.PNG

So, here is a screenshot of excel solving the problem. The numbers however are not negative just switch them to positive and there is your answer for each.

7%= $1,116.54

10%=$818.46

13%= $633.50

source: Excel

answered by: Mr. Jones

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Answer 2

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Midland Oil has $1,000 par value bonds outstanding at 8 percent interest

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