The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when the going rate of inters is (1) 5 percent, (2) 8 percent and (3) 12 percent? Assume that there is only one more interest payment to be made on Bond S.

Question

The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when the going rate of inters is (1) 5 percent, (2) 8 percent and (3) 12 percent? Assume that there is only one more interest payment to be made on Bond S. 
I don't need the answers, I just want to know the process in how to solve. Thank you.

Anonymous · Answer

hoy ayaw pag-nilaug sa answer kay dli ka madato ana.