# Calculation Of Bond Rates At Par

Question

Calculate the price of the following instruments, showing all work:

 Nominal 2500 100 1000 Coupon(%) 6% 6% 10% Maturity (years) 4 3 2 Payment frequency ANN SEMI ANN ANN Discount rate 3% 6% 11%

Having identified the appropriate bond, use it’s parameters to answer the following questions:

What will be the price of this bond if the discount rate increases by 1%?

What will be the price of this bond if the discount rate decreases by 1%?

Summary

The question belongs to Finance and it discusses about calculating bond trades at par and the price if bond discount rates increase and decrease.

Total Word Count NA

• Rasha

this is a very good website

• maani

I have 50 questions for the same test your page is showing only 28

• joeanne

• joeanne

hi can anyone help or guide me to my assignments. thanks

• Monik

• Cristina

This solution is perfect ...thanks

• Janete

Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

• Sandeep

Perfect bank of solution.

• Oxana

great !

• Paul Brandon-Fritzius

thanks for the quick response. the solution looks good. :)

• tina Johnson

thnx for the answer. it was perfect. just the way i wanted it.

• Giuseppe

works fine.