Question
You want to buy a $2000 corporate bond maturing in 3 years with a coupon rate of 9%. The current market rate is of 7%.
You want to buy a $2000 corporate bond maturing in 3 years with a coupon rate of 9%. The current market rate is of 7%. Answer the following questions:
1) How much is the bond going to cost you today?
2) Will the coupon rate change if the market rate rises to 8%?
3) What will the price be of the bond if market rate is 6%?
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Accounting A Level And AS Level
Authors: Harold Randall
1st Edition
0521539935, 978-0521539937
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