As can be seen, as the required yield increases, the value of the bond $($and the value of

the whole issue$)$ decreases.

$2\mathrm{.}1\mathrm{.}4$ Bonds and obligations: Exercise $13$

On $10$th March $2012,$ bonds with the following characteristics were

issued:

$C=60$

$N=100,000$ bonds

$n=3$ years

$i=0\mathrm{.}06$

Bonds with annual coupons

Find the a$)$ market value and the b$)$ outstanding balance of a single bond

on $1)10$th March $2013$ and on $2)10$th June $2013.$ Suppose that the

market required yield on both dates is: $6\mathrm{.}5\%,6\mathrm{.}25\%,$ and $5\mathrm{.}8\%.$

$2\mathrm{.}1\mathrm{.}4$ Bonds and obligations: Exercise $13$

On $10$th March $2012,$ bonds with the following characteristics were issued:On $10$th March $2012,$ bondswith the following characteristics were issued: