Homework Answers
Value of bond (V) =
For , given data
V = Option C
| year | Cash flow | Pv( Cash fow) |
| 0.5 | 5 | $4.72 |
| 1 | 5 | $4.46 |
| 1.5 | 5 | $4.22 |
| 2 | 5 | $3.99 |
| 2.5 | 5 | $3.77 |
| 3 | 5 | $3.56 |
| 3.5 | 5 | $3.36 |
| 4 | 5 | $3.18 |
| 4 | 110 | $69.91 |
| Value | $101.67 |
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6) What would be the current market value of a risk free bond with a face...
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