5 A 10-year, $1,000 par value strip bond is to be issued to yield 7 percent....
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5 A 10-year, $1,000 par value strip bond is to be issued to yield 7 percent. (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) a. What should be the initial price of the bond? Price of the bond $ b. If immediately upon issue, interest rates dropped to 6 percent, what would be the value of the strip bond? Value of the bond $ c. If immediately upon issue, interest rates increased to 9 percent, what would be the value of the strip bond? Value of the bond $ 5 A 10-year, $1,000 par value strip bond is to be issued to yield 7 percent. (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) a. What should be the initial price of the bond? Price of the bond $ b. If immediately upon issue, interest rates dropped to 6 percent, what would be the value of the strip bond? Value of the bond $ c. If immediately upon issue, interest rates increased to 9 percent, what would be the value of the strip bond? Value of the bond $
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