Business Math Lesson 15: Bonds, part 1
Channel: Amy Goldlist
Date: 27/05/2021

You purchase a bond with a face value of $1,000 and a coupon rate of 6% compounded semi-annually.  The bond has a maturity of 10 years.

a) What is the semi-annual coupon payment?
b) How much is the bond worth if you sell it in 3 years and the interest rate for similar bonds is 8% compounded semi-annually?
c) How much is the bond worth if you sell it in 4 years and the interest rate for similar bonds is 5% compounded semi-annually?