What is future value of bond assuming you will reinvest

Assignment Help Financial Management

Reference no: EM131949078

Consider a coupon bond with a 7% coupon rate paid once a year. The bond has 4 years to maturity and par value of 1000. Suppose that the interest rate today is 5%.

What is the future value of the bond assuming you will reinvest the coupons and will take the money only 4 years from now. Assume that the interest rate will stay 5% until the maturity time.

Bond value assuming this time assume that a month after you bought the bond the interest rate fell to 3% and it will stay 3% until the maturity time.

Reference no: EM131949078

Questions Cloud

Compare the puritan revolution and the french revolution : compare and contrast the Puritan Revolution and the French Revolution and EXPLAIN THE STATEMENT Revolutions end by devouring their own children.

Determining the response of cells : Discuss the three most common types of interactions/effects on cells. Give an example for each type of effect.

How is homosexuality viewed in ghana christianity : How is homosexuality viewed in Ghana Christianity? Are people in the LGBTQ community accepted or condemned?

Discuss two ways in which your body will respond : Name the likely acid-base disorder. Be as specific as possible. (B). Discuss two ways in which your body will respond to this change in blood pH.

What is future value of bond assuming you will reinvest : What is the future value of the bond assuming you will reinvest the coupons and will take the money only 4 years from now.

What would be the future value : What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years?

Discuss about connections between privilege and religion : Post an explanation of the connections between privilege and religion. Describe a situation in which members of a religion experience privilege.

How does fraser describe the conditions of life in trenches : How did the soldiers feel about what they were doing? How does Fraser describe conditions of life in trenches? What hardships and difficulties does he endure?

Blood type the child can receive during the transfusion : The child was determined to have AB blood. Which of the following statements is correct regarding the blood type the child can receive during the transfusion?

User Account

All Pages