What is the change in the value of your bond show work


Corporate finance mba 8135, georgia state university

Suppose you own a bond that has a par value of $1000, has 25 years to maturity, pays a coupon of 5% paid semiannually and has a yield to maturity of 4.8%. The bond rating is downgraded which causes the yield to maturity to increase to 5.2%. What is the change in the value of your bond? Show work, provide time lines, and mathematical equations.

Solution Preview :

Prepared by a verified Expert
Basic Statistics: What is the change in the value of your bond show work
Reference No:- TGS02847199

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)