What is the price of the bond when you bought it

Assignment Help Business Economics

Reference no: EM131196973

Suppose you purchase a 3-year, 5 percent coupon bond with face value $100 at par and hold it for two years. During that time,the interest rate falls to 4 percent.

a) What is the price of the bond when you bought it?

b) What is the price of the bond two years after the purchase?

Reference no: EM131196973

Questions Cloud

Journalize the entries to record the fore going transactions : Journalize the entries to record the foregoing transactions.- Indicate the amount of the interest expense in (a) 2014 and (b) 2015.

How does money of stable value influence the volume of trade : Use the economic way of thinking to answer three of the following four questions. Be sure to answer each in at least two complete sentences. Provide page references to CSE and other learning materials when appropriate. What impact will a higher minim..

What is the mass of water in the tank : A water tank has a mass of 3.65 kg when empty and has a mass of 52.5 kg when filled to a certain level. What is the mass of water in the tank?

Explain the manager role in conflict management : Identify the audience, for example a board of directors or a new management team following an acquisition or a merger, for your final presentation due in Week Five. Provide a rationale for your audience selection.

What is the price of the bond when you bought it : Suppose you purchase a 3-year, 5 percent coupon bond with face value $100 at par and hold it for two years. During that time,the interest rate falls to 4 percent. What is the price of the bond when you bought it? What is the price of the bond two yea..

Predict the position and momentum of the block : Using a time step of 0.1 s,predict the position and momentum of the block at a time0.2 s after you release the block. (Assume the +y direction is upward. Express your answers in vector form.)

What is civilian labor force participation rate for country : What is the civilian labor force participation rate for this country? How many civilians are employed in this country? What is the civilian unemployment rate for this country?

What sale price per box should ben hiebert set : Should the two orders be accounted for as one job or two in Hiebert's system?- What sale price per box should Ben Hiebert set for the second order?

Expansionary gap and recessionary gap : aggregate demand; aggregate supply. real wages; nominal wages. short run; long run. expansionary gap; recessionary gap

User Account

All Pages