yazeedkhalid
May 16, 2011, 07:30 AM
Heyy Guys please help me out,ihave this quistion and it's really hard to answer if you guys can help me out iwould aperciate it,here it is
you just purchased a bond which maturesin 20 years.the bond has a face value of $ X,where X E [2000,1000 000],and has a percent annual coupon,the market interest rate is 10 percent
( i dont have the sign in my keyboard but its similar to it)
* find the present value of bond in ever y year during the maturity period.
*suppose that the market interest rates has increased immdeitly to (10+y)percent after the bond purchasing;where Y E [1,9].find the present value of the bond in every year during the maturity period.
*supposed that the market intreset rate has decreased imdeitly to (10-Y)percent after the bond purchasing:where Y E[1,9] find the present value of the bond in every year during maturity period .
plaz help me
you just purchased a bond which maturesin 20 years.the bond has a face value of $ X,where X E [2000,1000 000],and has a percent annual coupon,the market interest rate is 10 percent
( i dont have the sign in my keyboard but its similar to it)
* find the present value of bond in ever y year during the maturity period.
*suppose that the market interest rates has increased immdeitly to (10+y)percent after the bond purchasing;where Y E [1,9].find the present value of the bond in every year during the maturity period.
*supposed that the market intreset rate has decreased imdeitly to (10-Y)percent after the bond purchasing:where Y E[1,9] find the present value of the bond in every year during maturity period .
plaz help me