Question: Bond Problem: Use the data provided and answer the following questions. 30 Points Bell South Dole Xerox Coupon interest rate 6.375% 7.875% 7.2% Years to
Bond Problem: Use the data provided and answer the following questions. 30 Points
|
| Bell South | Dole | Xerox |
| Coupon interest rate | 6.375% | 7.875% | 7.2% |
| Years to maturity | 27 | 12 | 11 |
Bonds par value $1000.
a. Calculate the values of each of the bonds if your required rates of return is 7.2%
From the 5 keys. Fill in the missing pieces. 6 points
Bell South Work: Dole Work: Xerox Work:
|
FV = _______
Pmt = _______
N = 27
I/y = 7.2 |
FV = -1000
Pmt = -78.75
N = 12
I/y = 7.2
|
FV = -1000
Pmt = _______
N = 11
I/y = _______
|
| Price = $903 | Price = $ ________ | Price = $____________ |
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