Read the excerpt from Monster. PETROCELLI Mr. Harmon, do you know James King? STEVE I know him from the neighborhood. Based on t
2 answers:
You might be interested in
Answer:
The value of a bond can be calculated by the formula;
r is the required return
n is the number of periods
P is the par value
Coupon = 10% * 1,000 = $100
1. Required return is 8%.
= $1,134.20
2. Required return is 10%
= $1,000
3. Require return is 12%;
= $887.00