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Find the pv of the bond

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Reference no: EM133120252

Assume you have a bond bought on 1st of August 2005 , maturity date is 1st of August 2016 , if the bond has semi annual coupon payments with 8 % YTM and 9 % Coupon rate, find the following.

A. Find the PV of the bond

B. Find the PV of the bond given it's a Zero - Coupon Bond

C. What is the bond's price elasticity if the required return changed to 10%?

D. Calculate the duration of the bond.

E What is the percentage change in bond's price for an increase in yield for 0:3 percentage point.

F. With a decrease in interest rates, would you prefer investing in coupon or zero coupon bonds and why?

Reference no: EM133120252

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