When the interest rate is 10 percent, what is the price of a bond that matures...
When the interest rate is 10 percent, what is the price of a bond that matures in one year, has a $300 face value, and has a coupon of $20 per year?
$93.24
$266.11
$272.72
$290.90
$282.64
Homework Answers
Total payment after 1 yr = 300 + 20 = 320
int rate = 10%
P = F/(1+i)^t
P = 320 / (1+0.1) = 290.90
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