         VALUE OF A BOND

THIS PROGRAM SHOWS HOW THE VALUE OF A BOND MAY CHANGE
WHEN THE INTEREST RATE CHANGES. WE ASSUME WE HAVE A BOND WITH
A FIXED NUMBER OF YEARS TO MATURITY. FOR VARIOUS INTEREST
RATES THE PRESENT VALUE OF THE FUTURE CASHFLOWS FROM THE
BOND ARE DETERMINED. IT IS VERY INTERESTING TO SEE HOW MUCH
THIS VARIES FOR LONG TERM BONDS.

PRESS ENTER TO BEGIN? 
NUMBER OF YEARS TO MATURITY        ? 10
COUPON INTEREST PAYMENT PER YEAR   ? 40
MATURITY VALUE OF THE BOND         ? 1000
LOWEST INTEREST RATE TO CONSIDER(%) ? 1
HIGHEST INTEREST RATE TO CONSIDER(%)? 20
DO YOU DESIRE LINE PRINTER OUTPUT(Y/N)? Y
PRESENT VALUE OF BOND AT VARYING INTEREST RATES

 10 YEARS TO MATURITY.
COUPON PAYS $ 40  PER YEAR FOR INTEREST.
MATURITY VALUE FOR THE BOND IS 1000 
INTEREST RATE       VALUE OF BOND
      1.0                1284.14
      2.9                1094.31
      4.8                 937.62
      6.7                 807.71
      8.6                 699.52
     10.5                 609.04
     12.4                 533.05
     14.3                 468.97
     16.2                 414.71
     18.1                 368.58

PRESS ENTER FOR MORE COMPUTATION? -1
