You buy a 10 percent 15-year 1000 par value floating rate
You buy a 10 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 12 percent.
What is your one best guess as to the value of the bond?
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you buy a 10 percent 15-year 1000 par value floating rate bond in 1999 by the year 2014 rates on bonds of similar risk
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harold reese must choose between two bondsbond x pays 88 annual interest and has a market value of 900 it has 10 years
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