Problem:
The Kalodop Corporation issues 12% annual coupon bonds that pay $1,000 at maturity. These bonds mature in 15 yrs. What is the value (PV) or (Vb) of the bonds if the current or market or prevailing or going or YTM is 10%.
Required:
Question 1: Now assume the current or market or prevailing or going or YTM rate is 12% on the bond above. What is its Vb or PV?
Question 2: Now assume the current or market or prevailing or going or YTM rate is 14% on the bond above. What is the Vb or PV?
Note: Give you opinion citing relevant ethical principles.