Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 25

Suppose Ford sold an issue of bonds with a 15-year maturity, a $1,000 par value, a 12% coupon rate, and semiannual interest payments.
(a) Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 9%. At what price would the bonds sell
(b) Suppose that, two years after the bonds' issue, the going interest rate had risen to 13%. At what price would the bonds sell
(c) Today, the closing price of the bond is $783.58. What is the effective current yield