1.
FIN3100’s outstanding bonds mature in 10 years, have a par value
of $1,000, and make an annual coupon payment of $70. The market
yield on the bond is currently 10%. What is the bond's price?
B.) FIN3100 issued bonds with a 15-year maturity two year ago.
The bonds have a 7% coupon, make one payment per year, and sold at
their $1,000 par value. Market rate at the time was 7%. Now, two
year later, the market rate has...