Bond prices depend on the market rate of interest, stated rate of interest, and time. Requirements 1.

Question:

Bond prices depend on the market rate of interest, stated rate of interest, and time.
Requirements
1. Compute the price of the following 8% bonds of Country Telecom.
a. $100,000 issued at 75.25
b. $100,000 issued at 103.50
c. $100,000 issued at 94.50
d. $100,000 issued at 103.25
2. Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.