What will the value of the bond l be

Reference no: EM133251824

Question - An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 11 years, while Bond S matures in 1 year.

What will the value of the Bond L be if the going interest rate is 5%, 7%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 11 more payments are to be made on Bond L. Round your answers to the nearest cent.

Reference no: EM133251824

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