(a) Calculate the current value of Bond N. (See Table 6.2)

(b) What will happen to value/price as the bond approaches maturity?

What will be an ideal response?


(a) Using financial calculator: PMT=$90, N=17, I=15, FV=500, CPT PV = $590.71
(b) The bond price will decrease and come closer to par.

Business

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