FIN 3134 PAYE
Bond pricing practice problems
This document provides additional practice problems focusing on bond pricing.
1. Greenbrier Industrial Products bonds have a 7.60 percent coupon and pay interest
annually. The face value is $1,000 and
Answers to Concepts Review and Critical Thinking Questions
The four parts are the present value (PV), the future value (FV), the discount rate (r), and the life of
the investment (t).
Some TVM practice problems
1. Suppose that you invest $12,000 today, and the investment earns 6% a year (i.e., 6% is the rate
of return). What will your investment be worth in 10 years?
2. Suppose that I offer to pay you $25,000 in 8 years. How much is th