EX3-8. A Bond has a face value of $1,000 and a coupon rate of 6.5%.The bond had a maturity period of 3 years. Please compute the bond price with a. Interest rate is 6.5% b. Interest rate is 15% C. Interest rate is 5.1%

EX3-8. A Bond has a face value of $1,000 and a coupon rate of 6.5%.The bond had a maturity period of 3 years. Please compute the bond price with a. Interest rate is 6.5% b. Interest rate is 15% C. Interest rate is 5.1%

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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Question

EX3-8. A Bond has a face value of $1,000 and a coupon rate of 6.5%.The bond had a
maturity period of 3 years. Please compute the bond price with
a. Interest rate is 6.5%
b. Interest rate is 15%
c. Interest rate is 5.1%
Coupon Rate
6.5%
6.5%
6.5%
Interest Rate
5.1%
6.5%
15.0%
Price of Bond
$1,038.05
$1,000.00
$ 805.93

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