Videos: Bonds
Bonds
You purchase a bond with a face value of $1,000 and a coupon rate of 6% compounded semi-annually. The bond has a maturity of 10 years.
- What is the semi-annual coupon payment?
- How much is the bond worth if you sell it in 3 years and the interest rate for similar bonds is 8% compounded semi-annually?
- How much is the bond worth if you sell it in 4 years and the interest rate for similar bonds is 5% compounded semi-annually?
