You buy a 12 percent 15year 1000 par value floating rate bon

You buy a 12 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 14 percent.

What is your one best guess as to the value of the bond?

Value of the bond ________

FOr a floating rate bond, rate paid by the bond changes with market interest rates. Hence, price of bond remains constant. Best guess is $1,000. Value of the bond is $1000.

You buy a 12 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 14 percent. What is your

You buy a 12 percent 15year 1000 par value floating rate bon

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