mauidawl26
Oct 15, 2012, 08:00 PM
For this problem, consider a 6% coupon bond that matures in 20 years.
What would be the value of this bond if interest rates fall to 5% the day after it is
purchased? If interest rates fell to 5% after one year, what would the bond be worth at
that point?
What would be the value of this bond if interest rates fall to 5% the day after it is
purchased? If interest rates fell to 5% after one year, what would the bond be worth at
that point?