Question 2 3 pt One can think of a bond as a financial asset that promises...
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Question 2 3 pt One can think of a bond as a financial asset that promises to pay a fixed amount of money at specified dates in the future. The present value of a bond is essentially the price of the bond for a given rate of interest. Suppose a bond has a five year maturity, $50 coupon, and a face value of $1000 which is the principal payment that will be repaid after five years. If the other option for investment is to keep your money into a savings account which carries a 10% interest (recently changed after the bond was issued) then what is the maximum price for the bond you will be willing to offer? (round your answer to zero decimal places) Question 2 3 pt One can think of a bond as a financial asset that promises to pay a fixed amount of money at specified dates in the future. The present value of a bond is essentially the price of the bond for a given rate of interest. Suppose a bond has a five year maturity, $50 coupon, and a face value of $1000 which is the principal payment that will be repaid after five years. If the other option for investment is to keep your money into a savings account which carries a 10% interest (recently changed after the bond was issued) then what is the maximum price for the bond you will be willing to offer? (round your answer to zero decimal places)
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