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Calculate the price for 5 year and 30 year Bond, where Face Value is 1000 Coupon rate is 10 percent YTM is 12 percent If
Calculate the price for 5 year and 30 year Bond,
If instead the State Bank increases the policy interest rate such that investor YTM increases to 12% What is the price of the 30 year bond? What is the price of the 5 year bond? Draw a price yield graph showing the prices of the two bonds at these yields where Face Value is 1000
Coupon rate is 10 percent
YTM is 12 percent
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