What is the price today if the interest rate is 10 percent

Reference no: EM13302523

The Altoona Company issued a 25 year bond 5 years ago with a face value of $1,000. the bond pays interest semiannually at 10% annual rate.

a. What is the bonds price today if the interest rate is comparable new issues is 12%?

b. what is the price today if the interest rate is 8%?

c. explain the results of parts (a) and (b) in terms of opportunites available to investors.

d. what is the price today if the interest rate is 10%?

Reference no: EM13302523

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