Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8 years remaining to maturity, and have a required rate of return of 14.5 percent. a. The bond has a 6.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) b. The bond has a 8.8 percent coupon rate. (Do not round Intermediate calculations. Round your answer to 2 decimal places. (e.g.. 32.16)) c. The bond has a 14.5 percent coupon rate. (Do not round intermediate calculations.) Fair present value b. Fair present value Fair present value
Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8 years remaining to maturity, and have a required rate of return of 14.5 percent. a. The bond has a 6.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) b. The bond has a 8.8 percent coupon rate. (Do not round Intermediate calculations. Round your answer to 2 decimal places. (e.g.. 32.16)) c. The bond has a 14.5 percent coupon rate. (Do not round intermediate calculations.) Fair present value b. Fair present value Fair present value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8
years remaining to maturity, and have a required rate of return of 14.5 percent.
a. The bond has a 6.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g.,
32.16))
b. The bond has a 8.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g.,
32.16))
c. The bond has a 14.5 percent coupon rate. (Do not round intermediate calculations.)
a. Fair present value
b Fair present value
cFair present value
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