Question
Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12 percent. a.
Consider a five-year, 15 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12 percent.
| a. | What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
| Price of the bond | $ |
| b. | If the rate of interest increases 1 percent, what will be the bond |
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
