Maturity and bond price based problem


Question: One year ago a $1000 face value 6% coupon bond was selling for $918.93. since then, the market return decreased by two percentage points. The bond pays interest semi-annually and now has four years to maturity, the bonds price today is?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Maturity and bond price based problem
Reference No:- TGS02057459

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)