A $5,000 bond with a coupon rate of 6.5% paid semiannually has two years to maturity and a yield to maturity of 7%. If interest rates rise and the yield to maturity increases to 7.3%, what will happen to the price of the bond? OA. fall by $32.74 OB. fall by $27.29 OC. rise by $27.29 OD. The price of the bond will not change. ***
A $5,000 bond with a coupon rate of 6.5% paid semiannually has two years to maturity and a yield to maturity of 7%. If interest rates rise and the yield to maturity increases to 7.3%, what will happen to the price of the bond? OA. fall by $32.74 OB. fall by $27.29 OC. rise by $27.29 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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