CHAPTER 17 PROBLEM 4
- Devry University / Other
- 24 Aug 2015
- Price: $1
- Other / Other
FINANCE Investment Analysis and Portfolio Management CHAPTER 17 PROBLEM 4 The Shamrock Corporation has just issued a $1,000 par value zero coupon bond with an 8 percent yield to maturity, due to mature 15 years from today (assume semiannual compounding) a. What is the market price of the bond? b. If interest rates remain constant, what will be the price ot the bond in three years? c. If interest rates rise to 10 percent, what will be the price of the bond in three years?