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Author Question: Jordan bought a 4% semi-annual coupon bond with 25 years to maturity at par value of $1,000. If the ... (Read 240 times)

jordangardner

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Question 1

A $1,000 par value, 12-year annual bond carries a coupon rate of 7%. If the current yield of this bond is 7.995%, its market price to the nearest dollar is
◦ $876.
◦ $925.
◦ $1,075.
◦ $1,125.

Question 2

Jordan bought a 4% semi-annual coupon bond with 25 years to maturity at par value of $1,000.  If the required rate of return (yield to maturity) of this bond increases to 4.25%, by how much does the value of the bond change?
◦ the price falls by $37.04
◦ the price increases by $39.28
◦ the price falls by $38.27
◦ The value does not change if Jordan intends to hold the bond to maturity.


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Marked as best answer by jordangardner on Mar 29, 2022

aublw

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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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