Asked by Lam
A 10-year bond with a 5% coupon and a 1million VND par value is currently priced at
821,000VND.
a. If the current market interest rate is 8%. Should you buy the bond? Why or why not?
b. Assuming you buy and hold this bond for 6 years. What price must you sell the bond for if you
want to earn a 9% rate of return on this investment?
821,000VND.
a. If the current market interest rate is 8%. Should you buy the bond? Why or why not?
b. Assuming you buy and hold this bond for 6 years. What price must you sell the bond for if you
want to earn a 9% rate of return on this investment?
Answers
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