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As can be seen, as the required yield increases, the value of the bond ( and the value of the whole issue ) decreases. 2

As can be seen, as the required yield increases, the value of the bond (and the value of
the whole issue) decreases.
2.1.4 Bonds and obligations: Exercise 13
On 10th March 2012, bonds with the following characteristics were
issued:
C=60
N=100,000 bonds
n=3 years
i=0.06
Bonds with annual coupons
Find the a) market value and the b) outstanding balance of a single bond
on 1)10th March 2013 and on 2)10th June 2013. Suppose that the
market required yield on both dates is: 6.5%,6.25%, and 5.8%.
2.1.4 Bonds and obligations: Exercise 13
On 10th March 2012, bonds with the following characteristics were issued:On 10th March 2012, bondswith the following characteristics were issued:
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