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An investor has two bonds in his portfolio that have  the face value of $1000 and pay...

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Finance

An investor has two bonds in his portfolio thathave  the face value of $1000 and pay a 10% annualcoupon. Bond L matures in 15 years and Bond S matures in 1 year

(a). what will the value of each bond be if getting interestrate is 5%, 8%, and 12%. Assume that only one more interest paymentis to be made on Bond S at its maturity and that 15 more paymentsare to be made on bond L.

Present value=

payment=

future value=

annual rate=

periods=

compounding=

Answer & Explanation Solved by verified expert
4.4 Ratings (898 Votes)
a Bond S Interest Rate is 5 Payment    See Answer
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Transcribed Image Text

An investor has two bonds in his portfolio thathave  the face value of $1000 and pay a 10% annualcoupon. Bond L matures in 15 years and Bond S matures in 1 year(a). what will the value of each bond be if getting interestrate is 5%, 8%, and 12%. Assume that only one more interest paymentis to be made on Bond S at its maturity and that 15 more paymentsare to be made on bond L.Present value=payment=future value=annual rate=periods=compounding=

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