The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if interest rate is (a) 12%, (b) 10% and (c) 8%?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...
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1. The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if interest rate is 

(a) 12%, 

(b) 10% and 

(c) 8%?

 

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