Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 10 years remaining to maturity, and have a required rate of return of 11 percent.

2. The bond has a 5.4 percent coupon rate. 
4. The bond has a 7.4 percent coupon rate. 
6. The bond has a 11 percent coupon rate.

Answer rating: 100% (QA)

To calculate the fair present values of the bonds we need to discount the future cash flows coupon payments and the face value at the required rate of ... View the full answer