{"id":69707,"date":"2021-11-02T11:53:06","date_gmt":"2021-11-02T11:53:06","guid":{"rendered":"https:\/\/papersspot.com\/blog\/2021\/11\/02\/calculations\/"},"modified":"2021-11-02T11:53:06","modified_gmt":"2021-11-02T11:53:06","slug":"calculations","status":"publish","type":"post","link":"https:\/\/papersspot.com\/blog\/2021\/11\/02\/calculations\/","title":{"rendered":"Calculations"},"content":{"rendered":"<p>Suppose Hillard Manufacturing sold an issue of bonds with a 12-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. <br \/>Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 5%. At what price would the bonds sell? <br \/>Suppose that 2 years after the initial offering, the going interest rate had risen to 11%. At what price would the bonds sell? <br \/>Suppose that 2 years after the issue date (as in part a) interest rates fell to 5%. Suppose further that the interest rate remained at 5% for the next 10 years. What would happen to the price of the bonds over time? <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Suppose Hillard Manufacturing sold an issue of bonds with a 12-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 5%. At what price would the bonds sell? Suppose that 2 years [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[22],"class_list":["post-69707","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-economics"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/69707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=69707"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/69707\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=69707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=69707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=69707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}