The US government issues a 1-year bond with a face value of $1,000 and a zero coupon. The market interest rate is 10 percent, what is the market price of the bond? If that bond price falls by 5 percent, what happens to its yield?© BrainMass Inc. brainmass.com September 22, 2018, 6:59 am ad1c9bdddf - https://brainmass.com/economics/bonds/determine-market-price-yield-174016
In a financial calculator, we input:
FV = 1000
payment = 0
interest rate = 10%
Number of years = ...
The expert determines the market price and yield for bonds.