Question
You buy an 11 percent, 20-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are
You buy an 11 percent, 20-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 13 percent.
What is your one best guess as to the value of the bond?
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
