Consider a bond paying a coupon rate of 10% per year, compounded annually. Assume that the market interest rate (YTM or return on investments of like risk) is 15% per year. In other words you want a 15% return on the bond. The bond has three years until maturity. The par value is $1,000. Assume that you buy the bond today for $885.84.
20) What is the interest payment that you will receive each year (yr 1, yr 2, and yr 3)?
Please put your answer on the blank line on the answer sheet. Please record your answer in dollars and cents.
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