Katie Pairy Fruits Inc. has a $1,000,20-year bond outstanding with a nominal yield of 15...
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Katie Pairy Fruits Inc. has a $year bond outstanding with a nominal yield of percent coupon equals times $ $ per year Assume that the current marketrequired interest rate on similar bonds is now only percent. a Compute the current price of the bond. b Find the present value of percent times $or $ for years at percent. The $ is assumed to be an annual payment. Add this value to $ c Explain why the answers in parts a and b are basically the same. There is a slight difference due to rounding in the tables.
Katie Pairy Fruits Inc. has a $year bond outstanding with a nominal yield of percent coupon equals times $ $ per year Assume that the current marketrequired interest rate on similar bonds is now only percent.
a Compute the current price of the bond.
b Find the present value of percent times $or $ for years at percent. The $ is assumed to be an annual payment. Add this value to $
c Explain why the answers in parts a and b are basically the same. There is a slight difference due to rounding in the tables.
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