You bought a bond with a face value of $1,000 with a stated interest rate of 10% with a maturity of 2 years. The interest is paid yearly.

You bought a bond with a face value of $1,000 with a stated interest rate of 10% with a maturity of 2 years. The interest is paid yearly. What market price do you pay for the bond if the market interest rate is 5%?

You bought a bond with a face value of $2,000 with a stated interest rate of 20% with a maturity of 3 years. The interest is paid yearly. What market price do you pay for the bond if the market interest rate is 5%?

Could you please help me with step by step calculation?

Thanks a lot

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *