A bond has a par value of $1,000, 6 years to maturity, and a coupon rate of 3.16%? Assume that coupon payments are made semiannually.
If the required rate of return is 5.54%, what is the value of the bond?
What is the bond’s value if the required rate of return increases to 6.31%?
What is the bond’s value if the required rate decreases to 4.31%?