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Consider a bond that pays 10% par interest per year every half year when the market interest rate is 8%. The face value of this
Consider a bond that pays 10% par interest per year every half year when the market interest rate is 8%. The face value of this bond is $1,000, and there are three years left until maturity.
A. Calculate the price of the bond today. B. If the market interest rate remains at 8% after the next six months of interest payment, calculate the bond price at this time. C. What is the total return on investment when the bond is purchased today and sold again six months later?
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