Consider a five-year, 15 percent annual coupon bond with a face value of $1,000.The bond trades at
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond trades at a rate of 12 percent.
a. | What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (eg, 32.16)) |
bond price | ps |
b. | If the interest rate increases 1 percent, what will the bond be? |
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date: