Finance

posted by .

You purchased a $1,000 five percent coupon bond that matures in 10 years.
How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? What would the bond be worth in one year if interest rates fell to 4% at that point?

  • Finance -

    You purchased a $1,000 five percent coupon bond that matures in 10 years.
    How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond? What would the bond be worth in one year if interest rates fell to 4% at that point

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance (Coupon Bonds)

    I am having a hard time starting on how to calculate this please. You purchased a $1,000 five percent coupon bond that matures in 10 years. How much would your bond be worth if interest rates fall to 4% the day after you purchase the …
  2. Finance 200

    . If you purchase a zero coupon bond today for $225 and it matures at $1,000 in 11 years, what rate of return will you earn on that bond (to the nearest 10th of 1 percent)?
  3. finance

    You own a bond that has an 8 percent coupon and matures 8 years from now. You purchased this bond at par value when it was originally issued. If the current market rate for this type and quality of bond is 8.25 percent, then you would …
  4. Finance

    Bond X is a premium bond making annual payments. The bond pays an 8 percent coupon, has a YTM of 6 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6 percent coupon, has a YTM …
  5. college

    I purchased a $1,000 five percent coupon bond that matures in 10 years. How much would my bond be worth if interest rates fall to 4% the day after I purchase the bond?
  6. accounting

    You purchased a $1,000 five percent coupon bond that matures in 10 years. How much would your bond be worth if interest rates fall to 4% the day after you purchase the bond?
  7. Finance

    An investor purchases a 10-year U.S. government bond for $800. The bond's coupon rate is 10 percent and,?
  8. Corporate Finance

    The yield-to-maturity on a bond is the interest rate you earn on your investment if interest rates do not change. If you actually sell the bond before it matures, your realized return is known as the holding period yield. Suppose that …
  9. Finance

    Judy Johnson is choosing between investing in two Treasury securities that mature in five years and have par values of $1,000. One is a Treasury note paying an annual coupon of 5.06 percent. The other is a TIPS which pays 3 percent …
  10. Math

    A tax-exempt bond was recently issued at an annual 12 percent coupon rate and matures 20 years from today. The par value of the bond is $1,000. a. If a required market rates are 12 percent, what is the market price of the bond?

More Similar Questions