"Suppose you buy a 30 year zero coupon bond with a face value of $1000 and...

"Suppose you buy a 30 year zero coupon bond with a face value of $1000 and a 4% annual interest rate, compounded semi-annually. 1 minute after you buy the bond, the interest rate on this bond falls to 3%, compounded semi-annually. What is the percent change in the bond price?

Expert Solution

jeff jeffy answered 2 years ago

You buy a 30-year zero coupon bond with a face value of $1000 and a 4%...

You buy a 30-year zero coupon bond with a face value of $1000 and a 4% interest rate, compounded semi-annually. The moment after you buy the bond, the interest rate falls to 3%, compounded semi-annually. What is the percent change in the bond price? Note: the sign is important!

8.You buy a 30 year zero coupon bond which will pay you $1000 in 30 years...

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Suppose there is a 3-year bond with a $1000 face value, 12% coupon payments and a...

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Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 19...

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Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 18...

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