Bond valuation and structure of interest rate

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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?

Reference no: EM131473836

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