1) What is the coupon rate of a nine year, $10,000 bond with semiannual coupons...
60.1K
Verified Solution
Link Copied!
Question
Finance
1) What is the coupon rate of a nine year, $10,000 bond with semiannual coupons and a price of $8,666.52, if it has a yield to maturity of 7%?
2) A $1,000 bond with a coupon rate of6.1 % paid semiannually has nine years to maturity and a yield to maturity of 7.5 %. If interest rates rise and the yield to maturity increases to 7.8 %, what will happen to the price of the bond?
A) rise by $18.04
B. fall by $18.04
C. fall by $21.65
D. The price of the bond will not change.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
