QuestionWhat price should Suresafe expect to sell a \$1,000 bond with 10% interest and 3 years to maturity if the return is 14%?

Studdy Solution
Calculate the price per bond.
Price\, per\, bond = \frac{\$100}{( +.14)^} + \frac{\$100}{( +.14)^2} + \frac{\$100}{( +.14)^3} + \frac{\$,000}{( +.14)^3}$$Price\, per\, bond = \$87.72 + \$76.94 + \$67.44 + \$752.32$$$$Price\, per\, bond = \$984.42$$uresafe should be able to realize a price of $984.42 per bond on the sale.