Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
Question
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Chapter 11.2, Problem 1EQ
Summary Introduction

To determine:

The change in future sale price of bond with effect to change in rates.

Introduction:

A bond is debt instrument in which the issuer owes a debt on the holder of the bond created for the purpose of raising capital. Depending upon the terms of the bond, the holder is entitled for a fixed income in the form of interest payment from the issuer of the bond. This rate of interest is also referred as coupon rate.

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