Bond prices and maturity dates. Moore Company is about to issue a bond with monthly...
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Bond prices and maturity dates. Moore Company is about to issue a bond with monthly coupon payments, an annual coupon rate of 10%. and a par value of $1.000. The yield to maturity for this bond is 11%. a. What is the price of the bond if it matures in 15, 20, 25. or 30 years? b. What do you notice about the price of the band in relationship to the maturity of the bond? ..... a. What is the price of the bond if it matures in 15 years? $ (Round to the nearest cent.) What is the price of the bond if it matures in 20 years? $ (Round to the nearest cent.) What is the price of the bond if it matures in 25 years? (Round to the nearest cent.) What is the price of the bond if it matures in 30 years? (Round to the nearest cent.) b. What do you notice about the price of the bond in relationship to the maturity of the bond? (Select the best response.) O A. As the time to maturity increases, the price of the bond increases. B. As the time to maturity increases, the price of the bond decreases first and then increases. C. As the time to maturity increases, the price of the bond decreases. O D. As the time to maturity increases, the price of the bond increases first and then decreases
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