Question: 4 pts Question 24 A $5,000 face value bond has a $600 annual coupon payment and 10 years to maturity. If the yield to maturity

 4 pts Question 24 A $5,000 face value bond has a

4 pts Question 24 A $5,000 face value bond has a $600 annual coupon payment and 10 years to maturity. If the yield to maturity is 6%, what is the price of the bond in percentage of par? 100.00 144.16 O 72.08 720.80 Question 25 4 pts What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 25 years? Assume a discount rate of 7% and cash flows at the end of the period. (Enter your dollar answer as a number rounded to 2 decimal places. For example: $100.25 would be entered as 100.25)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!