Suppose that you are considering the purchase of a bond that matures in years.
The bond has a par value of $ it pays a coupon of percent annually and the
coupon is paid semiannually s
A Calculate the market value price of the bond today if the bond's market rate
yield is
B Calculate the market value price of the bond in five years if the bond's market
rate is
C Calculate the Net Present Value and the yield on this bond investment if the
current market rate on this bond is you expect the market rate to be in
years, you plan to sell the bond in five years, and your required rate of return on
this investment is semiannually Is this an acceptable investment? hint:
use the purchase price in part A and the sell price in part B
