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2) A 15 years bond with annual coupon rate equal to 8% (paid semi), if the par value of the bond is JD 10,000, the
2) A 15 years bond with annual coupon rate equal to 8% (paid semi), if the par value of the bond is JD 10,000, the bond is redeemable at JD 9000, what is the fair price for the bond assuming the interest rate is 9%? 3) For the previous question, if the Investor purchased the bond, and later on he decided to sell the bond in the secondary market, particularly after 3 years, what will the fair price be at that time assume the interest rate increased to 10%? 3) For the previous question, if the Investor purchased the bond, and later on he decided to sell the bond in the secondary market, particularly after 3 years, what will the fair price be at that time assume the interest rate increased to 10%
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