--%>
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 Administration Administration :

    Administration: It refers to the Governor's Office and those individuals, subdivisions, and offices reporting to it (example, the Department of Finance).

    		•
  • Q : Question on balance sheet of Yukon Bank

    Normal 0 false false

  • Q : Explain Plan of Financial Adjustment

    Plan of Financial Adjustment (PFA): This is the plan proposed by a department, accepted by the Department of Finance, and acknowledged by the State Controller's Office (SCO), to allow the SCO to assign costs paid from one item to one

    		•
  • Q : Explain Workload Budget Workload Budget

    Workload Budget: Workload Budget means the budget year cost of presently authorized services, adjusted for modifications in caseload, enrollment, population, statutory cost-of-living adjustments, one-time expenditures, chaptered legislation, full-year

    		•
  • Q : Explain three career opportunities in

    List and explain the three career opportunities in the field of finance.Finance has three main career paths: financial management, financial markets and institutions, and investments. Financial managem

    		•
  • Q : Explain Encumbrance Encumbrance : The

    Encumbrance: The commitment of all or portion of an appropriation for future expenses. The Encumbrances symbolize commitments associated to unfilled purchase orders or unfulfilled contracts. Exceptional encumbrances are recognized as budgetary expense

    		•
  • Q : Aggregate expenditure Normal 0 false

    Normal 0 false false

  • Q : Short run and long run influence Normal

    Normal 0 false false

  • Q : What is Finance Letter Finance Letter

    Finance Letter (FL): The proposals made, by the Director of Finance to the chairpersons of the budget committees in each and every house, to amend the Budget Bill and the Governor's Budget from that presented on January 10 to reflect a revised plan of

    		•
  • Q : Impact on India on Global Economic

    Explain the impact on India on Global Economic crisis ?

    		•