Question
Please show work. 1. What is the price of a $1,000 par value bond with an 8% coupon rate paid annually, if the bond is
Please show work.
1. What is the price of a $1,000 par value bond with an 8% coupon rate paid annually, if the bond is priced to yield 8% and has 9 years to maturity?
2. What would be the price of the bond in #1 if the yield decreased to 6%?
3. What would be the price of the bond in #1 if the yield rose to 10% and was callable at 110% of par in 4 years?
4. What is the yield to maturity for a Zero Coupon Bond that has 15 years left to maturity and is selling for $209?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
