Marin Company's bonds mature in 8 years, have a par value of $1,000, and make an...

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business finance

Answer 1

Answer #1

Price of a bond is mathematically represented as: 1 1-- (1 + i) PEC. - +- м. (1 + i) where P is price of bond, with periodi

M = $1000, n = 8, i = 5.40%, C = $65

1- P = 65 * = (1+0.054) 0.054 1000 T (1 + 0.054)

P = $413.40 + $656.56

P = $1,069.96

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Answer 2

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