My professor handed us a take home quiz but I don't understand how to do it. It's probably super easy but here are the questions.
1. A ten year, 8 percent, 1,000 dollar bond is issued at 96.
a. How much does this bond sell for?
B. Was the market rate greater or less than 8%?
C. What is the total amount of interest paid over the life of this bond?
D. What is the total amount of interest expense recorded on this bond?
2. A ten year, 8 percent, 1000 dollar bond is issued at 102 3/4.
a. How much did this bond sell for?
B. Was the market rate of interest greater or less than 8%?
C. What is the total amount of interest paid over the life of this bond?
D. What is the total amount of interest expense recorded on this bond
Posted: 4 years ago
Budget: $999999.99