Bond valuation and structure of interest rate
What is a bond?
Explain conceptually how bonds are priced.
Can bond prices be affected by interest rate? Why?
What kind of bonds gets affected by interest rate most: long-term bonds with zero coupons are riskier than short-term bonds that pay coupon interest?
Bigbie Corp. issued a five-year bond a year ago with a coupon of 8 percent. The bond pays interest semiannually. If the yield to maturity on this bond is 9 percent, what is the price of the bond?
Hindenberg, Inc., has a 10-year bond that is priced at $1,100.00. It has a coupon of 8 percent paid semiannually. What is the yield to maturity on this bond?