At what price would the bonds sell

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Reference no: EM13281587

Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments.

Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 8%. At what price would the bonds sell? Round the answer to the nearest cent.

Suppose that, 2 years after the initial offering, the going interest rate had risen to 16%. At what price would the bonds sell? Round the answer to the nearest cent.

 

Reference no: EM13281587

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