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Suppose that you are considering investing in a 4 - year bond that has a face value of $ 1 , 0 0 0 and
Suppose that you are considering investing in a year bond that has a face value of $ and a coupon rate of
a If the market interest rate on similar bonds is the price of the bond is $Round your response to the nearest cent.
The bond's current yield is Round your response to two decimal places.
b Suppose that you purchase the bond, and the next day the market interest rate on similar bonds falls to
The price of the bond will be $
Round your response to the nearest cent.
The current yield will be
Round your response to two decimal places.
At an interest rate of the price an investor is willing to pay for the bond is $Round your response to the nearest cent.
Your rate of return on the bond was Round your response to two decimal places.
rises to
At an interest rate of the price an investor is willing to pay for the bond is $Round your response to the nearest cent.
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