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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Suppose that five years ago Cisco Systems sold a 15-year bond issue that had a $1,000 par value and a 7 percent coupon rate. Interest is paid semiannually.
a. If the going interest rate has risen to 10 percent, at what price would the bonds be selling today?
b. Suppose that the interest rate remained at 10 percent for the next 10 years. What would happen to the price of the Cisco Systems bonds over time?
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