Question: steps on how to do it pls I bought a 30 year, 6% annual pay coupon $1,000 par bond 10 years ago, so has 20



I bought a 30 year, 6% annual pay coupon $1,000 par bond 10 years ago, so has 20 years remaining to maturity. Interest rates increased to 10% today for comparable 20 year bonds. Calculating today's market value, I estimate the value to be closet to this number a. $660 b. $690 c. $720 d. 750 I bought a 30 year, 5% semiannual pay coupon $1,000 par bond Interest rates increased to 8% today for comparable 30 year bonds. Calculating today's market value, I estimate the value to be closet to this number a. $600 b. $630 c. $660 d. $690 I bought a 30 year, 5% semiannual pay coupon $1,000 par bond Interest rates decreased to 3% today for comparable 30 year bonds. Calculating today's market value, I estimate the value to be closet to this number a. $1,300 b. $1,325 c. $1,350 d. $1,400 I bought a 30 year, 5% semiannual annual pay coupon $1,000 par bond Interest rates increased to 7% today for comparable 30 year bonds. Calculating today's market value, I estimate the value to be closet to this number a. $725 b. $750 c. $775 d. $800
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
