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Author Question: Consider two recent bond issues by Microsoft: both have face values of $1,000 and coupon rates of ... (Read 49 times)

soccerdreamer_17

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on: Apr 25, 2021
Consider two recent bond issues by Microsoft: both have face values of $1,000 and coupon rates of 10% but one bond (call it the short bond) has five years to maturity and the other, the long bond, has twenty years to maturity. Assume that yields fall from 15% to 5%. Which bond will experience a greater price increase, and by how much?
◦ Long bonds by $384
◦ Short bonds by $384
◦ The change in price is equal for both bonds
◦ Long bonds by $936
◦ Short bonds by $936
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by soccerdreamer_17 on Apr 25, 2021

Swizqar

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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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soccerdreamer_17

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

scottmt

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Reply 3 on: Yesterday
Excellent

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