QUESTION 9 Practice Calculating Present Valve Consider corporate bonds with . PMT a coupon rate of 6% that pay interest annuaily (the nature of these interest payments determines the compounding frequency of the bond in this case it is annual compounding) N 11 years to maturity maturity means the bond contract is over) . FVa par vakje of $1,000 (this is what the bond is worth at maturity) IY the market rate of interest on similar debt is 14% (the market rate reflects the riskiness of the debt instrument when we discount the cash flows we want the rate we use for 1 to capture risk. so the I/Y is often referred to as the market rate" or "discount rate") Find the value of these bonds (solve for PV) and round to the nearest dollar QUESTION 10 Now Practice PV again... Consider bonds that pay annual coupons with a rate of 8% and a par value fo 51,000 These bonds will mature in 12 years. The discount rate is 19% Find the Present Value of these bonds (round to the nearest dollar) QUESTION 11