Week 4 assignment- bond valuation

.xlsx
School
University of North Carolina, Greensboro **We aren't endorsed by this school
Course
ACC 202
Subject
Finance
Date
Oct 29, 2023
Pages
2
Uploaded by SargentDiscoveryWaterBuffalo74 on coursehero.com
Par: $2000 Coupon: 6% Maturity: 4 Rate of return: 6% ($2,000.00) PV= $2000 The bond is trading at par because the coupon rate is equ Par: $2000 Coupon: 6% Maturity: 4 Rate of return: 11% ($1,689.76) PV= $1689.75The bond is trading at a discount because the coupon rate Par: $2000 Coupon: 6% Maturity: 10 Rate of return: 7% ($1,859.53) PV= $1859.53The bond is trading at a discount because the coupon rate The sensitivity of an investor's bond holdings to potential shifts in the required rate of return is frequently measured. Bond price elasticity and duration are two approaches utilized for this purpose. All other things being equal, the more sensitive a bond's price is to changes in interest rates, the longer it takes for the bond to mature. Bond prices that have relatively low coupon payments are also more affected by changes in interest rates.
al to the discount rate e is less than the discount rate e is less than the discount rate
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