Question: inhave a question i need help with this Enter your answers into the box below. Make sure you label your answers using (1), (2), etc.
Enter your answers into the box below. Make sure you label your answers using (1), (2), etc. You many wish to provide your work for partial credit if your answer is partially correct. 4 Firm ABC has a bond with face value of $100, coupon rate of 7%, and a 15-years maturity. Firm ABC makes semi-annual coupon payments. Investors require a return of 4% (1) What is the present value of all coupon payments? (2) What is the present value of face value? (3) What is the value of the bond? (4) If the price of the bond is $125, will you invest in such a bond? (5) If interest rate goes up by 2%, what will be the value of the bond? (6) What will be the rate of change in the value of the bond compared to the value of (3) above
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