Change in market interest rates, Finance Basics

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Change in market interest rates

Problem:

You have the following bond: $10,000 par value, Mkt Rate of interest is 9.25%, coupon rate is 10.5%, compounded semi-annually, 35 years to maturity. The PV of the bond is _______. Five years from now, with no change in market interest rates, how much is the bond worth?

A.11,315.05

B.$11,261.68

C.$11.032.20

D.$11,073.68

E.$11,294.30

Explain comprehensively and show all calculation.

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Finance Basics: Change in market interest rates

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Finance Basics: Change in market interest rates

Reference No:- TGS0877435

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Recent Questions Asked Finance Basics

Q : Current yield on the bonds

Q : Best estimate of the value of sunshine operations

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Finance Basics: Change in market interest rates

Reference No:- TGS0877435

Recent Questions Asked Finance Basics

Q : Current yield on the bonds

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