Solution

Par value= 1,000

Coupon interest= .08

Rate of return= .12

N= 12

(par*coupon%)

(1+ return%)nx=1

n

å

80

(1+.12)1

1

1

å80

(1+.12)2

1

2

å80

(1+.12)3

1

3

å80

(1+.12)4

1

4

å80

(1+.12)5

1

5

å80

(1+.12)6

1

6

å

80

(1+.12)7

1

7

å80

(1+.12)8

1

8

å80

(1+.12)9

1

9

å80

(1+.12)10

1

10

å80

(1+.12)11

1

11

å80

(1+.12)12

1

12

å1000

(1+.12)12

1

12

å

par

(1+ return_ rate)last _nx

n

å

Answer

• $752.23

• You can insert solution here or just final answer

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