What is its present value

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Reference no: EM131947171

1. A 15 year callable bond can be called in five years at a price of $1100. Bond has a par value of $1000, please $100 annual coupon, and it’s yield to call is 8.5%. What is bonds current price?

2. And investment will pay $100 at the end of each of the next three years, $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If other investments of equal risk or an 8% annually, what is its present value.

Reference no: EM131947171

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