Value of a Semi-Annual Coupon Bond ( 1 Year)

Face Value 10000

Interest Rate 5%
Time of Maturity (Years) 1
Number of Period 2
Coupon Rate 7%

Price of Bond ($10,192.74)

Value of a Semi-Annual Coupon Bond ( 1 Year)

Face Value 10000
Interest Rate 8%
Time of Maturity (Years) 1
Number of Period 2
Coupon Rate 7%

Price of Bond ($9,905.70)

Value of a Semi-Annual Coupon Bond ( 1 Year)

Face Value 10000
Interest Rate 10%
Time of Maturity (Years) 1
Number of Period 2
Coupon Rate 7%

Price of Bond ($9,721.09)

Value of a Semi-Annual Coupon Bond ( 1 Year)

Face Value 10000
Interest Rate 12%
Time of Maturity (Years) 1
Number of Period 2
Coupon Rate 7%

Price of Bond ($9,541.65)

 Value of a Semi-Annual Coupon Bond ( 30 Year)
Face Value 10000
Interest Rate 5%
Time of Maturity (Years) 30
Number of Period 60
Coupon Rate 7%

Price of Bond ($13,090.87)

Value of a Semi-Annual Coupon Bond ( 30 Year)

Face Value 10000
Interest Rate 8%
Time of Maturity (Years) 30
Number of Period 60
Coupon Rate 7%

Price of Bond ($8,868.83)

Value of a Semi-Annual Coupon Bond ( 30 Year)

Face Value 10000
Interest Rate 10%
Time of Maturity (Years) 30
Number of Period 60
Coupon Rate 7%

Price of Bond ($7,160.61)

Value of a Semi-Annual Coupon Bond ( 30 Year)

Face Value 10000
Interest Rate 12%
Time of Maturity (Years) 30
Number of Period 60
Coupon Rate 7%

Price of Bond ($5,959.64)

Based on the value of a one year bond, it can be observed that
the price of bond with different interest rate does not have a
large marginal difference but with the 30-year bond, the
difference between the different interest rate has a large
marginal difference. Hence, when the interest rate increases,
the price of bond decreases. A bond's price would increase if
prevailing interest rates were to drop.

Based on the value obtained, it can be said that the time of

maturity and number of periods play a big role on the price of
bond. Comparing the one-year bond and the 30-year bond, it
can be said that in the one-year bond, with the time of
maturity as 1 year and number of periods as 2 does inflict a
slight changes on the price of bond with the different interest
rate. But with the 30-year bond, the time of maturity is 30
years and number of period is 60 gives a significantly large
difference between the interest rates.

The price of bond between the different interest rate and

constant coupon rate shows that the interest rate, time of
maturity and number of periods does have a significant
impact over the price of bond.