What is bond value if required rate of return increases

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Reference no: EM131886583

A bond has a par value of $1,000, 7 years to maturity, and a coupon rate of 3.35%? Assume that coupon payments are made semiannually.

a. If the required rate of return is 3.50%, what is the value of the bond? (Round answers to 2 decimal places.)

Bond value $

b. What is the bond’s value if the required rate of return increases to 5.65%? (Round answers to 2 decimal places.)

Bond value $

c. What is the bond’s value if the required rate decreases to 3.65%? (Round answers to 2 decimal places.)

Bond value $

Reference no: EM131886583

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