A 10-year Treasury bond with a $1,000 par value has a 12% coupon and pay interest every 6 months. The bond is three years old and has just made its sixth payment. If interest rates fell to 8%, what would price would these bonds sell at?
The question belongs to Finance and it is about calculation of current selling price of a bond.
Total Word Count 69Download Full Solution
If you are here for the first time, you can request for a discount coupon, which can knock off upto 20% of the quoted price on any service.