You've just purchased a $1,000 face value bon for $930. It pays semi-annual coupons and has 10 years to maturity and a 7.60% coupon rate. At what price should you be able to sell the bond in 4 years if market rates are expected to remain the same for the foreseeable future?

Answer rating: 100% (QA)

To determine the price at which you should be able to sell the bond in 4 years if market rates are expected to remain the same we need to calculate th... View the full answer