What do you expect the price of this bond months from now

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Reference no: EM132210819

Question - Bond x is issued at par making quarterly coupon payments. Its coupon rate is 8 percent per year and has 5 years to maturity. Assuming its face value is 10,000 dollars and the market interest rate of the bond (YTM) remains unchanged, answer the following questions:

1) What do you expect the price of this bond 3 months from now after coupon due is paid?

2) What do you expect the price of this bond 4 months from now?

3) What do you expect the price of this bond 5 months from now?

Reference no: EM132210819

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