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I need an explanation about how to solve this questions (the way to solve the questions) 3. A 3-year bond with 12.000$ nominal value is
I need an explanation about how to solve this questions (the way to solve the questions)
3. A 3-year bond with 12.000$ nominal value is issued with 14% coupon interest rate. If expected return from bond is 9%, find the value of bond.
4. What is the total amount of cash paid to
investor in 3rd year for the bond in Question 3?
5. If interest rates on the market fall by 2%, what will be new value of bond in Question 3?
6. If interest rates on the market increase by 5%, what will be new value of bond in Question 3?
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