What is the value of a bond that has a par value of $1,000, a coupon rate of 8.85 percent (paid annually), and that matures in 10 years? Assume a required rate of return on this bond is 9.02 percent.
Fresh Water, Inc. sold an issue of 13-year $1,000 par value bonds to the public. The bonds have a 8.17 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 9.07 percent. What is the current market price of the bonds?
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