Consider a junk bond with a 12 percent coupon and 20 years to maturity. The current required

Question:

Consider a junk bond with a 12 percent and 20 years to maturity. The current required rate of return for this bond is 15 percent. What is its price? What would its price be if the required yield rose to 17 percent 20 percent?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...