You buy a 3-year 10 coupon bond with face value 1000 today, Ask an Expert

Finance

You buy a 3-year, 10% coupon bond with face value $1000 today. The market interest rate currently is 10% also.

a. What is the market price of the bond today?

b. You hold the bond for a year and sell it off a year later when the interest rate is 8%. What is the market price of the bond a year later?

c. What is your one period rate of return on the bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92068633

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