Question: Pregunta 1 Sin responder an Punta como 5.00 P Marcar pregunta A bond pays interest yearly has a face value of $1,000, a coupon rate

 Pregunta 1 Sin responder an Punta como 5.00 P Marcar pregunta
A bond pays interest yearly has a face value of $1,000, a

Pregunta 1 Sin responder an Punta como 5.00 P Marcar pregunta A bond pays interest yearly has a face value of $1,000, a coupon rate of 9%, four (4) years until maturity, while the market rate for bonds of a similar rating is 6% at the time. Determine the market value of the bond, Vo: Seleccione una: a. $1,401.37 b. $846.66 C. $874.15 d. $1103.95 Pregunta 2 Sin responder an Punta como 5.00 P Marcar pregunta Timbukt, Inc. has annual bond payment liabilities of $10 million at the end of the next five (5) years. The firm intends to immunize the bond issuance via two zero-coupon issues with one (1) and four (4) years maturity. Assume a flat yield curve with 8% interest throughout the relevant period. Determine the present value of the 4-year bonds. Seleccione una: O a. $24.64 millions b. $0.68 millions c. $6.23 millions d. $15.29 millions

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