(bond
valuation)
bellingham bonds have an annual coupon rate of
8
percent and a par value of
$1,000
and will mature in
10
years. if you require a return of
7
percent, what price would you be willing to pay for the bond? what happens if you pay more for the bond? what happens if you pay less for the bond?
a. the price you would be willing to pay for the bond is
$nothing .
(round to the nearest cent.)