You purchased a 4 coupon 1000 par value bond it has 8 years


You Purchased a 4% coupon, $1000 par value bond. It has 8 years to maturity.

1. If the required rate of return for bonds of this risk level is 12%, how much would you pay for this bond?

2. If interest rates changed instantly to 15%, what would be the price of this bond?

3. What is the percent change in bond price?

4. What is the bond price elasticity?

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Financial Management: You purchased a 4 coupon 1000 par value bond it has 8 years
Reference No:- TGS01406233

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