Bond as an investment-calculate value at each level

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A. You are looking at buying a bond as an investment. You are considering one that has a $1,000 par value and pays $25 interest every 6 months. It matures in 15 years and you can buy it for $875. Your required rate of return is 6%. Should you buy the bond? B. Same information as in part A except you can buy the bond for $950. Should you buy the bond? C. You are now looking at a bond that is $1,000 par value with a coupon rate of 4%. It is a 10 year bond. What is the value of this bond if the market discount rate is 3%, 5% and 6%? Calculate value at each level.

Reference no: EM131059681

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