What will be the value of each of these bonds

Reference no: EM13298098

The garraty company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity 0f 1 year. What will be the value of each of these bonds when the going rate of interest is (1) 5% (2) 8%, and (3) 12%? assume that there is only one more interest payment to be made on Bond S.

Reference no: EM13298098

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