Calculate the fair present values of the following bonds


Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 8 years remaining to maturity, and have a required rate of return of 13.5 percent.

a) The bond has a 6.4 percent coupon rate. Fair present value is __________.

b) The bond has a 8.4 percent coupon rate. Fair present value is __________.

c) The bond has a 13.5 percent coupon rate. Fair present value is __________.

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Financial Management: Calculate the fair present values of the following bonds
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