Bennifer Jewelers recently issued 10 year bonds that make annual interest payments of $50 Suppose you purchased one of these bonds at par value when it was issued, and right away market interest rates jumped and the YTM on your bond rose to 6 What happened to the price of your bond ...

Bennifer Jewelers recently issued 10-year bonds that make annual interest payments of $50. Suppose you purchased one

Question:

Bennifer Jewelers recently issued 10-year bonds that make annual interest payments of $50. Suppose you purchased one of these bonds at when it was issued, and right away market interest rates jumped and the YTM on your bond rose to 6 %. What happened to the price of your bond?
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...