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Ahmed and Husam INC.'s bonds have a par value of O.R 1,000. The bonds pay semiannual...

Ahmed and Husam INC.'s bonds have a par value of O.R 1,000. The bonds pay semiannual interest of O.R 40 and mature in five years.

a.         How much would you pay for Naser bonds if your required rate of return is 10%?

b.         How much would you pay if your required rate of return is 8%?   

          c.    What do you observe from your answers in (a) and (b)?

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