一道公司金融的题目!各位!拜托啦!This morning, Alicia bought a ten-year bond that pays 7% annual interest. She paid $994 for a $1,000bond. If the market interest rate on this type of bond declines to 6.5% tonight, how much will Aliciarece
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一道公司金融的题目!各位!拜托啦!This morning, Alicia bought a ten-year bond that pays 7% annual interest. She paid $994 for a $1,000bond. If the market interest rate on this type of bond declines to 6.5% tonight, how much will Aliciarece
一道公司金融的题目!各位!拜托啦!
This morning, Alicia bought a ten-year bond that pays 7% annual interest. She paid $994 for a $1,000
bond. If the market interest rate on this type of bond declines to 6.5% tonight, how much will Alicia
receive for her first interest payment?
a. $32.31
b. $35.00
c. $65.00
d. $69.58
e. $70.00
一道公司金融的题目!各位!拜托啦!This morning, Alicia bought a ten-year bond that pays 7% annual interest. She paid $994 for a $1,000bond. If the market interest rate on this type of bond declines to 6.5% tonight, how much will Aliciarece
e
The answer is $70 because 7% of $1,000 is $70. The bond issuer will pay out $70 in interest to the bond holder every year because the terms of the bond, which are actually written on the bond instrument, specify that the face value of the bond is $1,000 and that the annual interest rate is 7%. It doesn't matter to the bond issuer what price the bond sells for on the open market, whether at a discount or a premium. Nor does it matter to the bond issuer what the prevailing market rate of interest might be for other bonds of similar quality. These other factors, namely the prevailing market interest rate and the market value of the bond instrument itself, have nothing to do with the bond holders obligation to pay interest to the bondholder. They only come into play when the bond is actually traded (bought or sold) on the open market.