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problem: Compute the price of the following bonds, where F is the face value, c is the coupon rate, N is the number of years to maturity, & it is the interest rate [or discount rate, or yield]:

[A] F = $1,000, c = 0 percent, N = 10, i = 6 percent

[B] F = $10,000, c = 7 percent, N → ∞ (bond never matures), i = 6 percent

[C] F = $100, c = 10 percent, N = 2, i = 8 percent

[D] F = $10,000, c = 6 percent, N = 3, i = 9 percent

Basic Finance, Finance

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