Question
Assume the following characteristics of a corporate bond: Par Value = $1,000 Coupon Rate = 6.0% Maturity Date = June 30, 2038 Coupon Payments are
Assume the following characteristics of a corporate bond:
Par Value = $1,000
Coupon Rate = 6.0%
Maturity Date = June 30, 2038
Coupon Payments are made Semi-Annually
Current Market Yield-to-Maturity (Interest Rate) on this bond = 5.2%
The Issue Date of the Bond is not given
(1) What is the market value of this bond?
(2) If market interest rates rise for the bond described above, what will happen to the market value of the bond? Give an example.
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Finance And Economics Discussion Series The Effects Of Welfare Reform And Related Policies On Single Mothers Welfare Use And Employment In The 1990s
Authors: United States Federal Reserve Board, Adam Looney
1st Edition
1288711409, 9781288711406
