How to calculate the bond price which has a interest rate changing at the end of the investment period? and 230/365 Sorry 2 C U go, Mr. Bond :=(

How to calculate the bond price which has a interest rate changing at the end of the investment period?

An investment banker purchased 5 year $ 200 million of 10% bonds in an IPO. The banker plans to sell the bonds into the market next morning. Interest rates are falling rapidly and the banker fears these rates will fall overnight. This bonds pay annually. The banker was right and interest rates fell 50 basis points overnight. At what price will the bonds sell?


Bond best answer:

Answer by JoeyV
1) The banker "fears" interest rates are falling? The banker owns a fixed interest bond so he wants interest rates to fall.

2) In Excel, =PRICE(DATE(2011,1,1), DATE(2016,1,1), 0.1, 0.095, 100,1) = 101.92 as the price of the bonds. Thus, the bonds will sell for $ 203,839,700

Bond

230/365 Sorry 2 C U go, Mr. Bond :=(


Image by JVLIVSPhoto
Aug 20-230/365

A requiem for James Bond....

For the better part of 30 years I have been a huge fan of 007 from Roger Moore's winding down to Sean Connery's "final" 007 to Timothy Dalton's two 007 movies to Pierce Brosnan's four 007s to what would've been Daniel Craig's third 007 movie.

For the better part of five decades six multi-talented thespians have portrayed this British spy created by Ian A. Fleming. Although I was not born yet, even I say that Sir Sean Connery was by far, the best 007 even decades later. Pierce Brosnan came as close as he can to filling his shoes, and has done a good job. I was really hoping that Brosnan would do one last 007 movie. My guess is that a 50-something 007 was over the top. Connery and Moore were in their fifties when they did their last 007s, so why not Pierce?

Wishful thinkin', I guess...

Let's see... According to history, the actors who portrayed 007 as follows...

Sean Connery (1962-1968, 1971, 1983)
George Lazenby (1969)
Roger Moore (1973-1985)
Timothy Dalton (1987-1989)
Pierce Brosnan (1995-2002)
Daniel Craig (2006-2010?)

For further information, here's the link.
en.wikipedia.org/wiki/James_Bond

© 2010 JVLIVS Photography. All rights reserved.

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