Three years ago, Tristan bought a 30-year, 5.45%, $1,000 bond. The bond pays interest semiannually. He wants to sell the bond after receiving the sixth semiannual dividend.
a) Similar bonds are being issued that pay 4%. What is Tristan’s bond worth today? (Round your answer to the nearest cent.)
b) Similar bonds are being issued that pay 6%. What is Tristan’s bond worth today? (Round your answer to the nearest cent.)