In: Finance
What is the price of the following split coupon bond if comparable yields are 13 percent?
Principal | $2,000 |
Maturity | 12 years |
Annual coupon | 0% ($0) for years 1 - 3 |
11% ($220) for years 4 - 12 |
Round your answer to two decimal places.
$
If comparable yields decline to 12 percent, what is the appreciation in the price of the bond? Round your answer to two decimal places.
$