PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 3, Problem 1PS

Bond prices and yields* A 10-year bond is issued with a face value of $1,000, paying interest of $60 a year. If interest rates increase shortly after the bond is issued, what happens to the bond’s

  1. a. Coupon rate?
  2. b. Price?
  3. c. Yield to maturity?
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PRIN.OF CORPORATE FINANCE

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