Respuesta :
Answer:
The best guess to the value of bond is $1000.
Explanation:
The best guess to the value of a bond is $1000 because the flotation rate bonds are those bonds where coupon rate varies according to the market situation. Therefore, we can say that the coupon rate in the case of flotation bonds is based upon the rate of LIBOR, etc. Generally, the bond value remains the same and there will be no capital gain or loss to the investor.
The best guess to the value of a bond is $1000
The following information should be considered:
- The floation rate bond is the bond where the coupon rate should be changed and it should be changed as per the market condition.
- So here the price of the bond remains the same or we can say it should be constant.
Therefore we can conclude that The best guess to the value of a bond is $1000
Learn more: brainly.com/question/6201432
