The present worth of a $10,000 municipal bond due 6 years from now is $11,000. If the bond interest is payable quarterly and the interest rate used in discounting the cash flow is 8% per year compounded quarterly, what is the bond coupon rate b per year?
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The present worth of a $10,000 municipal bond due 6 years from now is $11,000. If the bond interest is payable quarterly and the interest rate used in discounting the cash flow is 8% per year compounded quarterly, what is the bond coupon rate b per year?
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- Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5.0%, how much is the bond worth today?Use Given-Required-Solution in answering problems. Provide cash flow diagram. A certain government-issued 10-year bond pays an interest at 16 percent every three months. If the total quarterly expense is 83,000 and the bond earns at 20 percent every three months, what is the face value of the bond? How much in the present should he pay for the bond? Round off to two decimal places in the final answer/s.Suppose a state of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bond is 6.4%, how much is the bond worth today?
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