A company issued a bond a few years ago that has a face value equal to $1,000 and pays investors $30 interest every six months. The bond has eight years remaining until maturity. If you require a 7 percent rate of return to invest in this bond, what is the maximum price you should be willing to pay to purchase the bond? *

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A:

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A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

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A: a) What is the present value of the bond in the absence of inflation if the market interest rate is…

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