Click on any of the boldfaced numbers to change the value for Face Value, the Coupon Rate or # of Years (Maturity).
Use the Market Rate slider to change the nominal (Market) interest rate.
Press Reset to start over.
Questions:
Use the table to calculate the price you would be willing to pay for a 5-year 6 percent coupon bond if the interest rate in the market is 10 percent.
Use the slide bar to change the market interest rate to 5 percent. What happens to the price of the bond described in question one?
Leaving the market interest rate at 5 percent, the coupon rate at 6 percent and the face value of the bond at $1,000, change the time to maturity of the bond (n) from 5 years to 10 years. What happens to the price of the bond?
