Business Studies, asked by Aagam11111, 1 month ago

You are considering bonds of two companies. Taxco's bond pays interest at 12% per year and Maxco's at 6% per year. Both have a face value of 1000 and maturity of three years. a.) What will be the value of bonds if the market interest rate is 9%? b.) What will be the values of the bonds if the market interest rate increases to 12%? c.) Which bond declines more in value when the interest rate rises? What is the reason?

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Answered by stu8063bhavya

0

Answer:

sorry I don't know the answer

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