Author Question: What is the current price of a 1,000 par value bond maturing in 12 years with a coupon rate of 14 ... (Read 85 times)

hubes95 · **on:** Jul 10, 2018

What is the current price of a 1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, that has a YTM of 13 percent?

A) 604
B) 1,090
C) 1,060
D) 1,073

Question 2

When home prices are falling, we would expect a(n) ________.

A) high mortgage default rates
B) low mortgage default rates
C) unchanged mortgage default rates
D) higher percentage of owner home equity