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e value of your bond changed overnight?

e value of your bond changed overnight?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A firm has issued bonds that will repay $116 with certainty one year from today. Yesterday, you purchased one at the market price of $99. Today, the yield on these bonds is 16%. By how much, in dollars, has the value of your bond changed overnight? Round to two decimal places and do not enter the $ sign. If your answer is $1.333, enter 1.33. If your answer is $1.666, enter 1.67. If appropriate (i.e., if the value of your bond decreased in value), remember to enter the sign.
Transcribed Image Text:A firm has issued bonds that will repay $116 with certainty one year from today. Yesterday, you purchased one at the market price of $99. Today, the yield on these bonds is 16%. By how much, in dollars, has the value of your bond changed overnight? Round to two decimal places and do not enter the $ sign. If your answer is $1.333, enter 1.33. If your answer is $1.666, enter 1.67. If appropriate (i.e., if the value of your bond decreased in value), remember to enter the sign.
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