Computation the price of the bonds

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Computation the price of the bonds

Calculate the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, and i is the interest rate (or discount rate, or yield)-

a. F = $100, c = 10%, N = 2, i = 8%
b. F = $10,000, c = 6%, N = 3, i = 9%
c. F = $1,000, c = 0%, N = 10, i = 6%
d. F = $10,000, c = 7%, N → ∞ (bond never matures), i = 6%

Reference no: EM1314420

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