--%>

How would the market price of a bond be influenced

All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?
Most of bonds issued in the United States pay interest semiannually (twice per year). Along with semiannual interest payments, we have to adjust the bond valuation model by multiplying n, the number of years to maturity, by two, and dividing k, the annual interest rate, by two.

   Related Questions in Finance Basics

  • Q : Domestic opportunity cost of production

    Hypothetical production possibilities tables for New Zealand and Spain are given below 639_Hypothetical production possibilities.png

    Q : Aggregate demand or aggregate supply

    Normal 0 false false

  • Q : What is Debt Financing Debt Financing :

    Debt Financing: Whenever a firm raises money for the working capital or capital expenses by selling bonds, bills, or notes to individual and or institutional investors. In return for lending money, the individuals or institutions become creditors and

  • Q : What are Summary Schedules Summary

    Summary Schedules: Different schedules in the Governor’s Budget Summary that summarize state revenues, expenditures and other fiscal and personnel data for the past, present, and budget years.

  • Q : Define Expenditure Expenditure : The

    Expenditure: The expenditures reported on a department’s annual financial reports and “past year” budget documents comprises of amounts paid and accruals (comprising encumbrances and payables) for obligations made for the fiscal year

  • Q : Explain Detailed Budget Adjustments

    Detailed Budget Adjustments: Department Detailed Budget Adjustments are comprised in department budget displays to give the reader a snapshot of proposed expenses and position adjustments in the department, why tho

  • Q : How do financial managers compute the

    How do financial managers compute the average tax rate?Average tax rates are calculated through dividing tax dollars paid by earnings before taxes (EBT).

  • Q : Describe financial ratio Describe

    Describe financial ratio? This is a number which expresses the value of one financial variable relative to another. Put more cleanly, a financial ratio is the result you obtain when you divide one financial number by another.  Computing an

  • Q : Define Executive Branch Executive

    Executive Branch: One of the three branches of state government, accountable for administering and implementing the state's laws and programs. The Governor's Office and those individuals, departments, and offices reporting to it (that

  • Q : Describe the equilibrium price and

    Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as: 16_Table for wheat.png