In 2001, you purchased a $1,000 corporate bond with a coupon interest rate of 5%. Today, comparable bonds are paying 4.30 percent. What is the approximate dollar price for which you could sell your bond? In your own words, describe why your bond increased in value.
In 2001, you purchased a $1,000 corporate bond with a coupon interest rate of 5%. Today, comparable bonds are paying 4.30 percent. What is the approximate dollar price for which you could sell your bond? In your own words, describe why your bond increased in value.
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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- In 2001, you purchased a $1,000 corporate bond with a coupon interest rate of 5%. Today, comparable bonds are paying 4.30 percent.
- What is the approximate dollar price for which you could sell your bond?
- In your own words, describe why your bond increased in value.
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