You currently own a 30 year treasury bond at 4 interest


You currently own a 30 year Treasury Bond at 4% interest, paid semiannually. The market interest rates for like securities rose to 5%. Would your bond sell for a premium or a discount? Why? What would the market value of your bond be? Prove your answer by showing your work.

Solution Preview :

Prepared by a verified Expert
Finance Basics: You currently own a 30 year treasury bond at 4 interest
Reference No:- TGS01387587

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)