Question
I only need the last question clarified please. I provided the others since they give necessary information. Zimmer Corp. bonds are rated BBB, pay coupon
I only need the last question clarified please. I provided the others since they give necessary information.
Zimmer Corp. bonds are rated BBB, pay coupon interest of $120 per year, and have 10 years to maturity. The face value of the bond is $1,000. If the yield for similar bonds is currently 12%, what is the bond's current market value (B0)?
1,000.00
For the Zimmer Corp bond described in Problem 1, find the bond's value if the yield for similar bonds increases by 200 basis points ("bps") to 14%.
895.68
For the Zimmer Corp bond described in Problem 1, find the bond's value if the yield for similar bonds decreases by 200 basis points to 10%.
1,122.89
Suppose the Zimmer Corp. bond paid interest semiannually. What would its value be if the yield is 12%?
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