Question 1. What is the cash flow of a 6% coupon bond that pays interest annually, matures in 7 years, and has a principle of $1,000?
Question 2. Assuming a discount rate of 8%, what is the price of this bond?
Question 3. Assuming a discount rate of 8.5%, what is the price of the bond?
Question 4. Assuming a discount rate of 7.5%, what is the price of the bond?