Question
How is the value of a bond determine? What is the value of a 110 year, $1,000 par value bond with a 10% annual coupon
How is the value of a bond determine?
What is the value of a 110 year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%?
what would be the value of the bond described in part 1 if just after it had been issued the expected inflation rate rose by three percentage points, causing investors to require a 13% return? Will we now have a discounted or a premium bond?
what would happen to the bonds value is inflation, fail, and RD decline to 7%? Will we now have a premium or a discount at Bond?
what what happened to the value of the 10 year bond overtime if they require right of return we made it 13%? If it reminded at 7%?
what is the yield to MATURITY on 10year, 9% annual coupon, $ 1000 PAR values bond that sales for $887.00? That sells for $1,134.20? What does the fact that bond sells at a discounted or at a premium tell you about the relationships between RD and the bonds coupon rate?
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