Question: 1. A bond you are evaluating, has a 8.5% coupon rate (compounded, semiannually), a thousand dollar face value and is 10 years from maturity. a.

1. A bond you are evaluating, has a 8.5% coupon rate (compounded, semiannually), a thousand dollar face value and is 10 years from maturity.
a. If the required rate of return on the Bond is 6%, what is the fair present value
b. If the required rate of return on the bond is 8%, what is the fair present value
c. what do your answers to part a and B say about the relation between required rates of return and fair values of bonds?

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