What is the market price of bond

Assignment Help Financial Management

Reference no: EM131930917

What is the market price of a $1,000, 8 percent bond (paying interest semi-annually) if comparable market interest rates drop to 6 percent and the bond matures in 15 years?

Interest Rate Per Period x Bond Face Value = Interest Payments

PV Annuity Factor x Interest Payments = PV of Interest Payments *

PV of $1 x Bond Face Value = PV Bond Face Value *

PV of Interest Payments + PV Bond Face Value = Bond Market Price (The answer)

please include the math

Reference no: EM131930917

Questions Cloud

Health promotion planning - santa ana health crusade : HCS412:Health Promotion Planning & Evaluation

Identify three decisions it makes : Based on a familiar organization, identify three decisions it makes in each of the following categories: strategic planning, management control.

Create an educational brochure to show perspectives : Imagine you are currently working for a family counseling agency and have been asked to create an educational brochure to explain the different perspectives.

Controlling inventory and satisfying demand : The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model

What is the market price of bond : What is the market price of a $1,000, 8 percent bond if comparable market interest rates drop to 6 percent and bond matures in 15 years

Discuss how you may use the site : Discuss how you may use this site when providing career counseling with clients. At least three references from the O*NET site.

List different types of training such as classroom and cbt : Discussion: IT Security Policy Implementations. List different types of training, such as classroom, computer-based training (CBT), and so on.

What are the stages of the family life cycle? : What are the stages of the family life cycle? Why is it important as a counselor to understand stages of the family life cycle?

Research the art and evolution of code breaking : Research the art and evolution of code breaking. Explore how it was achieved during World War II between the Axis and Allies in terms of Enigma and Ultra.

User Account

All Pages