Fast and Loose Company has outstanding an 8 percent,
four-year, $1,000-par-value bond on which interest is paid
annually. If the market required rate of return is 8 percent, what
is the market value of the bond?"
"Peking Duct Tape Company has outstanding a $1,000-face-value
bond with a 14 percent coupon rate and 3 years remaining until
final maturity. Interest payments are made semiannually. What value
should you place on this bond if your nominal annual required rate
of return is 14 percent?"
"A 3-year bond with 8% coupon rate and Rs.1000 face value has
the yield to maturity of 8%. Assuming annual coupon payment,
calculate the price of the bond."