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You have the following bond maturing in 4 years: Face Value = 1.000$; Semiannual dividends = 35$; Annual Interest rate= 5% Compute the PV of
You have the following bond maturing in 4 years:
Face Value = 1.000$;
Semiannual dividends = 35$;
Annual Interest rate= 5%
- Compute the PV of the cash flows?
- What will happen to the bond price if the interest rate decreases to 6%?
- What will be the price if the annual interest is 4%?
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