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    tionnanessa1's Avatar
    tionnanessa1 Posts: 2, Reputation: 1
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    Jun 16, 2007, 01:54 PM
    Interest Rate of Bonds
    The Garraty Company has two bond issues outstanding. Both bonds pay $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 interest 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.
    shaudette9's Avatar
    shaudette9 Posts: 2, Reputation: 1
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    #2

    Aug 31, 2007, 05:53 PM
    Can somebody please answer this question?
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