Question

Bond prices depend on the market rate of interest, stated rate of interest, and time.

Requirements
1. Compute the price of the following 7% bonds of United Telecom.
a. $ 500,000 issued at 76.75
b. $ 500,000 issued at 104.75
c. $ 500,000 issued at 95.75
d. $ 500,000 issued at 104.25
2. Which bond will United Telecom have to pay the most to retire the bond at maturity? Explain your answer.



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  • CreatedJanuary 16, 2015
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