How much would the bond be worth today

Reference no: EM13189576

A 30 year bond has a face value of $1,000 and a coupon rate of 6%, interest payments are paid semiannually. If the maturity from now is eually years and the currsnt market rate for the same bond is 10% per year, compound semilannually. How much is the bond worth?

What if the current market rate dropped 3 % today. How much would the bond be worth today?

What if the current market rate increased 3 % today. How much would the bond be worth today?

Reference no: EM13189576

Questions Cloud

Explain the characteristics of integer prgramming problems : Explain the characteristics of integer prgramming problems. Give specific instances in which you would use an integer programming model rather than an LP model. Provide real-world examples.

Matlab integration techniques : Use MATLAB integration techniques to determine the total Axial Elongation and explain the theory of Simpson 1/3 rule for integration in detail. Use appropriate examples to demonstrate how it works and how the integration result is computed.

How the applications of integer programming differ : Explain how the applications of Integer programming differ from those of linear programming. Why is "rounding-down" an LP solution a suboptimal way to solve Integer programming problems?

Database management system : Discuss five positives and negatives economic effects of database management system? Discuss five Indirect or direct environmental issues of database management system?

How much would the bond be worth today : A 30 year bond has a face value of $1,000 and a coupon rate of 6%, interest payments are paid semiannually. If the maturity from now is eually years and the currsnt market rate for the same bond is 10% per year, compound semilannually. How much is..

Write an equation for the area a of the triangle : the formula for the area of a triangle is A=1/2bh, where b represents the base length, and h represents the height. The perimeter of the triangle is 28 inches. Write an equation for the area A of the triangle in terms of its base length b.

How much do u have to invest each year to reach the goal : . Assume the annual interest rate at 8% per year and the investments and withdrawals of funds are made at the end of each year. How much money you will need in this account right after your last deposit How much do u have to invest each year to rea..

Diagenesis and metamorphism both alter the texture : The presence of redbeds indicates the sediments lithified in water and this caused the iron to rust. Diagenesis and metamorphism both alter the texture and mineral composition of rock; metamorphism is the more extreme process.

Which data set is more valuable : The number of shark attacks and deaths over a recent 5- year period is shown. Find the mean, median, mode, midrange, variance, and standard deviation for the date. Which data set is more valuable?

User Account

All Pages