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Author Question: A $1,000 face value bond has a coupon rate of 5%. Bonds of similar risk currently yield 7%. This ... (Read 277 times)

craiczarry

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on: Apr 25, 2021

Question 1

A $1,000 face value bond has a 9% annual coupon rate. The next coupon is due in one year. The bond matures in 15 years and the yield on the bond is 10%. What is the difference in price if the yield rises to 11%?
◦ -$67.76
◦ -$6.77
◦ $6.77
◦ $9.24
◦ $67.76

Question 2

A $1,000 face value bond has a coupon rate of 5%. Bonds of similar risk currently yield 7%. This bond should be selling
◦ at a premium.
◦ for its face value.
◦ at a discount.
◦ at the price for which Treasury bonds of the same maturity are currently selling.
◦ Cannot be determined without further information.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by craiczarry on Apr 25, 2021

ky860224

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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craiczarry

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

TheDev123

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Reply 3 on: Yesterday
Excellent

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