# Solved: An Investor Has Two Bonds In His Portfolio That Have A Face Value Of \$1,000 And Pay A 8% Annual Coupon. Bond L Matures In 10 Years, While Bond S Matures In 1 Year. Assume That Only One More In

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An investor has two bonds in his portfolio that have a face value of \$1,000 and pay a 8% annual coupon. Bond L matures in 10 years, while Bond S matures in 1 year.

Assume that only one more interest payment is to be made on Bond S at its maturity and that 10 more payments are to be made on Bond L.

1. What will the value of the Bond L be if the going interest rate is 6%? Round your answer to the nearest cent.
\$

What will the value of the Bond S be if the going interest rate is 6%? Round your answer to the nearest cent.
\$

What will the value of the Bond L be if the going interest rate is 8%? Round your answer to the nearest cent.
\$

What will the value of the Bond S be if the going interest rate is 8%? Round your answer to the nearest cent.
\$

What will the value of the Bond L be if the going interest rate is 14%? Round your answer to the nearest cent.
\$

What will the value of the Bond S be if the going interest rate is 14%? Round your answer to the nearest cent.
\$