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Author Question: If Risky Inc. has an outstanding bond with an annual coupon payment of $140 and is currently priced ... (Read 15 times)

trevg

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on: Aug 7, 2023

Question 1

If its yield to maturity increased by 1%, which bond would have the largest percentage decrease in value?

◦

a 3-year zero coupon bond 


◦

a 15-year zero coupon bond


◦

a 3-year bond with a 9% coupon


◦

a 15-year bond with a 9% coupon



Question 2

If Risky Inc. has an outstanding bond with an annual coupon payment of $140 and is currently priced at $872, what is this bond’s current yield?

◦

15.39%


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16.06%


◦

16.50%


◦

17.22%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by trevg on Aug 7, 2023

Deonnak85

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Reply #1 on: Aug 7, 2023
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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trevg

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Reply 2 on: Aug 7, 2023
Excellent

blakcmamba

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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