What is current market price if you decide to sell your bond

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Reference no: EM131074612

Redlands issued 20 year, $1,000 par value term bonds on January 1, 2010. The bonds had an 8% stated rate of interest..

Required:

1. On December 31, 2015 the market rate of interest is 8% on new bonds. What is the current market price if you decide to sell your bonds?

2. On December 31, 2015 the market rate of interest is 10% on new bonds. What is the current market price if you decide to sell your bonds?

3. On December 31, 2015 the market rate of interest is 7% on new bonds. What is the current market price if you decide to sell your bonds?

Reference no: EM131074612

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