[JSPERBER]

A bond with a face value of $1000 was with an annual coupon of 5.75%, with an original 7- year tenor and 5 years remaining to maturity. If the market rate interest rate for similar high yield bonds is 4%, what is the price of the bond, assuming interest is payable semiannually?

[monikernc]

It has been awhile but will take a shot. Calc the semiannual interest payment $1000 * .02875 = $28.75. Then discount the payment at n=10, i = .02 and the future value = 1,000 to get $1,285.19

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[aliceklein]

Just finished 44 years teaching World History in the seventh grade. Never one assignment of copy type homework! During the first week I tried one assignment and no one did it. So, thinking for myself, I decided if we are going to do something we are all going to do it. This core ethical belief led to a spectrum of thirty learning activities which involved everyone everyday now! Only thing missing were piles of ungraded papers done by mom, conferences where students were threatened by parents and pompous teachers because of fifteen missing papers, classroom tirades about being honorable and dependable, and the shame and guilt of doing stuff you know is wrong but everyone else is doing it so you should also. My proudest moment is when an hardcore homework guru, who loved to flunk half the kids based on missing one paper, bust into my workspace and declared “you do know you are making us all look bad!” Too funny. So like the article said everyone hates home work or Do My Excel Homework , so just stop the disgust.

[Author]

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