Compute the value after three years of $1, 000 invested in a 4-year bond with $32 annual coupons and $100 face value if the rates in consecutive years are as follows:
Scenario 1: 12%, 11%, 12%, 12%;
Scenario 2: 12%, 13%, 12%, 12%.
Design a spreadsheet and experiment with various interest rates.
Question 10.7: Compute the value after three years of $1, 000 invested in a...
Scenario 1: $1, 427.10; Scenario 2: $1, 439.69.
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