MM motors is selling an issue of bonds with a 10 year maturity, a $1000 par value, an 8% coupon rate. payments of interest are to be made annually.
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MM motors is selling an issue of bonds with a 10 year maturity, a $1000 par value, an 8% coupon rate. payments of

interest are to be made annually.


  1. what will be the price of this bond if the required rate of return is 12%
  2. three years after the bonds were issued, the required rate of return fell 8%. At what price will the bonds now sell?



one year ago clark company issued a 10 year, 12% semi annual coupon bond at its par value of $100-. what is the value of this bond today if the required rate of return is 9%

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