--%>
Assignment Help - homework help

How would the market price of a bond be influenced

All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?
Most of bonds issued in the United States pay interest semiannually (twice per year). Along with semiannual interest payments, we have to adjust the bond valuation model by multiplying n, the number of years to maturity, by two, and dividing k, the annual interest rate, by two.

   Related Questions in Finance Basics

  • Q : What is in store for banking

    What is in store for banking consolidation? Merger activity is a natural procedure by which companies make themselves more efficient and better capable to compete for customers. The banking industry is no exception

    		•
  • Q : Make out this new balance sheet Normal

    Normal 0 false false

  • Q : Riskiness of portfolio with very low

    What happens to the riskiness of portfolio if assets along with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk based on the degree of correlation among the two variables in questi

    		•
  • Q : Explain marginal cost of capital

    Explain marginal cost of capital schedule (MCC)? Is the schedule always horizontal line? Describe. The marginal cost of capital schedule is graphic depiction of the weighted average cost of capital at distinct levels of financing. The MCC sch

    		•
  • Q : Depict the slope of the line Normal 0

    Normal 0 false false

  • Q : Explain the basic goal of a business

    Normal 0 false false

    		•
  • Q : Explain Transfers Transfers : As

    Transfers: As employed in Schedule 10Rs and fund situation statements, transfers replicate the movement of resources from one fund to the other based on statutory authorization or particular legislative transfer appropriation authority.

    		•
  • Q : What is Out-of-State Travel blanket

    Out-of-State Travel (OST) blanket: The request by a state agency for Governor’s Office approval of the proposed out-of-state trips to be taken by that agency’s personnel throughout the fiscal year.

    		•
  • Q : What is Statute Statute: It is a

    Statute: It is a written law enacted by the Legislature and signed by the Governor or a vetoed bill overridden by a 2/3 vote of both houses), generally referred to by its chapter number and the year in which it is passed. The statutes which modify a s

    		•
  • Q : Reducing payroll costs It is likely

    It is likely that in the next few years, employers will face incresing pressures to reduce their payroll costs. critically evaluate the range of ways by which payroll costs can be reduced whilst taking into account the need to maintain a focus on the

    		•