Intro

A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.6% and pays coupon twice a year. The annual market interest rate for similar bonds is 3%.

Attempt 1/10 for 10 pts.

Part 1

What is the price of the bond (in $)?

Submit

Attempt 1/10 for 10 pts.

Part 2

2 years later, the market interest rate for similar bonds has gone up to 4%. What is the new price of the bond (in $)?