A 30 year bond has a face value of $1,000 and a coupon rate of 6%, interest payments are paid semiannually. If the maturity from now is eually years and the currsnt market rate for the same bond is 10% per year, compound semilannually. How much is the bond worth?
What if the current market rate dropped 3 % today. How much would the bond be worth today?
What if the current market rate increased 3 % today. How much would the bond be worth today?