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What is a bond market?

What is market value of bond?

  • Answer:

    It should be : PB = 80[1-(1+0.01]^-10/0.01 + 1000(1+0.01)^-10 PB = 757.70 + 905.29 PB = $1,663 - this is annually if Semi Annual : PB = 40 [1-(1+0.01]^-20/0.01 + 1000 (1+0.01)^-20 PB = 721.82 + 819.54 PB = $1,541.36 - semi annually I guess that should be the price of the bond.

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It should be : PB = 80[1-(1+0.01]^-10/0.01 + 1000(1+0.01)^-10 PB = 757.70 + 905.29 PB = $1,663 - this is annually if Semi Annual : PB = 40 [1-(1+0.01]^-20/0.01 + 1000 (1+0.01)^-20 PB = 721.82 + 819.54 PB = $1,541.36 - semi annually I guess that should be the price of the bond.

daxvilo

what would the price of the bond need to be to provide a yield of 10%. that is your answer, i'll leave this elementary math to you

got it

I don't know what annual analysis is but in order for similar bonds to yield 10% it would be closer to $800. less than $900

Edward C

I don't know what annual analysis is but in order for similar bonds to yield 10% it would be closer to $800. less than $900

Edward C

what would the price of the bond need to be to provide a yield of 10%. that is your answer, i'll leave this elementary math to you

got it

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