Question

Suppose that the market interest rate is 5%. Calculate the present value of the following. Show how your answer is obtained.

i. A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years.


ii. A discount bond with a face value of $5000 that matures in one year.


iii. A fixed payment loan with annual payments of $163 that matures in three years.

Answer 1

Answer:

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