Problem: Financial Markets & Institutions
In your answer, show how you got the answer. Add the formula and procedure.
What is the bond price of a $1,000 face value bond, with an 8% coupon rate paid semi-annually, that has a required return of 7.5% if
• The bond has 16 years maturity?
• The bond has 20 years maturity?
• What is the Duration of the bond with 16 years maturity, given the above information?
• What is the Duration of the bond with 20 years maturity, given the above information?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.