A $5,000 bond with a coupon rate of 5.7% paid semiannually has nine years to maturity and a yield to maturity of 8.4%. If interest rates rise and the yield to maturity increases to 8.7%, what will happen to the price of the bond? OA rise by $82.22 OB. fall by $98.67 OC. fall by $82.22 OD. The price of the bond will not change.

A $5,000 bond with a coupon rate of 5.7% paid semiannually has nine years to maturity and a yield to maturity of 8.4%. If interest rates rise and the yield to maturity increases to 8.7%, what will happen to the price of the bond? OA rise by $82.22 OB. fall by $98.67 OC. fall by $82.22 OD. The price of the bond will not change.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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