You purchased a $1,000 five percent coupon bond that matures in 10 years.

Question

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?

UNIT 5 EXCEL TEMPLATE

Answer 1

Please see your later post, which I saw first.

Sra