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1) You are pricing a bond with a coupon rate of 2%, par value of $1000, and 4 years remaining to maturity. a) Calculate its
1) You are pricing a bond with a coupon rate of 2%, par value of $1000, and 4 years remaining to maturity. a) Calculate its price under 3 scenarios based on the discount rate applied in the market being 2%,2.5%, and 1.5% (show your calculations), and form the table below. b) Explain what the table that you have formed above shows in terms of the bond price behavior with respect to changes in interest rates in the market
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