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e . How would the price of the bond be affected by a change in the going market interest rate? ( Hint: Conduct a sensitivity
e How would the price of the bond be affected by a change in the going market interest rate? Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this preblem. Round your answers to the nearest cent. tableNominal market rate,Actual bond price$ E Years to maturity tableNumber of coupon payment per year,Coupon rate,Par value,
e How would the price of the bond be affected by a change in the going market interest rate? Hint: Conduct a sensitivity analysis of price to changes in the going market interest rate for the bond. Assume that the bond will be called if and only if the going rate of interest falls below the coupon rate. This is an oversimplification, but assume it for purposes of this preblem. Round your answers to the nearest cent.
tableNominal market rate,Actual bond price$
E
Years to maturity
tableNumber of coupon payment per year,Coupon rate,Par value,
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