Question: a. A $ 1000 Par Value Bond has 2 years to maturity and pays $120 coupon annually. The market discount rate is 8%. Calculate the

a. A $ 1000 Par Value Bond has 2 years to

a. A $ 1000 Par Value Bond has 2 years to maturity and pays $120 coupon annually. The market discount rate is 8%. Calculate the value of a Bond. (5 marks) b. Assume a bond holder is expected to receive coupon of $100 forever and the current interest rate is 8%. What is the price of a bond

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