Question regarding the ending value of the bond

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1) What is the value of a bond that matures in 8 years, has an annual coupon payment of $90, and has a par value of $1000? Assume a required rate of return of 6%, and round your answer to the nearest $10.

2) What is the value of a bond that matures in 25 years, makes an annual coupon payment of $100, and has a par value of $1000? Assume a required rate of return of 11%, and round your answer to the nearest $10.

3) A 15 year bond issued today by Carris, Inc. has a coupon rate of 7%, a required return of 5% and a face value of $1000. The bond will be sold 4 years from now when interest rates will be 8%. What is the ending value of the bond when it is sold (to the nearest dollar)?

Reference no: EM131114020

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