(8) A bond pays a coupon rate of 6% annually and a discount rate of 3% is used by investors. The par value is $8000. (a) If the bond has FOUR years remaining until maturity, calculate the value of the...

(8) A bond pays a coupon rate of 6% annually<br>and a discount rate of 3% is used by investors.<br>The par value is $8000.<br>(a) If the bond has FOUR years remaining until<br>maturity, calculate the value of the bond today.<br>(6%)<br>(b) Now assume that the discount rate changes<br>for the THIRD year and the FOURTH year to be<br>9%, calculate the value of the bond today. (8%)<br>

Extracted text: (8) A bond pays a coupon rate of 6% annually and a discount rate of 3% is used by investors. The par value is $8000. (a) If the bond has FOUR years remaining until maturity, calculate the value of the bond today. (6%) (b) Now assume that the discount rate changes for the THIRD year and the FOURTH year to be 9%, calculate the value of the bond today. (8%)

Jun 07, 2022

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(8) A bond pays a coupon rate of 6% annually and a discount rate of 3% is used by investors. The par value is $8000. (a) If the bond has FOUR years remaining until maturity, calculate the value of the...

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