The owners of The Country Gentleman,a western clothing store,would like to raise money for expansion.They think the business can get a better interest rate by going to the financial markets and selling $100,000 worth of 10-year bonds.The interest rate for bonds has been fluctuating between 6% and 8%,so they decide to sell the bonds for 7%,which will be paid once a year.
Required:
a.Calculate the price at which the bonds are sold if the market interest rate is 6%.
b.Calculate the price at which the bonds are sold if the market interest rate is 7%.
c.Calculate the price at which the bonds are sold if the market interest rate is 8%.

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The Answer of The owners of The Country Gentleman,a western clothing store,would like to raise money for expansion.They think the business can get a better interest rate by going to the financial markets and selling $100,000 worth of 10-year bonds.The interest rate for bonds has been fluctuating between 6% and 8%,so they decide to sell the bonds for 7%,which will be paid once a year.
Required:
a.Calculate the price at which the bonds are sold if the market interest rate is 6%.
b.Calculate the price at which the bonds are sold if the market interest rate is 7%.
c.Calculate the price at which the bonds are sold if the market interest rate is 8%.

The Owners of the Country Gentleman,a Western Clothing Store,would Like