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You have the following three bonds in portfolio that needs re-evaluation: Bond 1 ORT Bond 2 LOK Bond 3 POL For more information about the
You have the following three bonds in portfolio that needs re-evaluation:
- Bond 1 ORT
- Bond 2 LOK
- Bond 3 POL
For more information about the three bonds, please take a look at the bottom of this page.
You expect that market interest rates will remain stable for the next 5 years at 3%, but after year 5, you expect the yield curve to go up = interest rates will go to 4% for year 6-10.
- What is the Fair Value of Bond 1? Show calculations (5p)
Bond 1 ABC 2019-2024 (Jan 1 issued, paid back Dec 31 2024)
Coupon rate 3%, Annual Coupons
Current Price $1.000
Par Value $1.000
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