0.700% Coupon

Coupon type-mixed

Issue size 1,000

If the new observed yield of the bond is 1.2%, the bond is likely to be trading at a price of If the current yield is higher than the coupon rate, investors would want a higher return on their investment. If the coupon rate is less than the yield required by the market, the price of the bond is most likely to beDsshan DT2n the par value of the bond, and the bond will sell at interest rates increase, the yield required by the market will increase, and the price of the bond is likely to ay . Thus, when the yield increases to 1.2%, the bond's price 4wns by Understanding yield to call and when bonds are called Suppose the bond had a call structure that allowed the company to call its bonds after one year. The call structure of the bonds states that the bonds would be callable at par. What would be the yield to call? In what situation would the company call the bond? o 2.197% O 1.487% o 1.448% o 0.765% O When interest rates fall O When the bond's price rises O When current yield on the bonds falls O When interest rates rise From an investor's perspective, if the investor holds these P&G bonds in their portfolio the bonds' value in the fixed-income asset class in the portfolio will most likely rates fall, the value of bonds in the portfolio will and market interest rates rise, ; but if market interest If the new observed yield of the bond is 1.2%, the bond is likely to be trading at a price of If the current yield is higher than the coupon rate, investors would want a higher return on their investment. If the coupon rate is less than the yield required by the market, the price of the bond is most likely to beDsshan DT2n the par value of the bond, and the bond will sell at interest rates increase, the yield required by the market will increase, and the price of the bond is likely to ay . Thus, when the yield increases to 1.2%, the bond's price 4wns by Understanding yield to call and when bonds are called Suppose the bond had a call structure that allowed the company to call its bonds after one year. The call structure of the bonds states that the bonds would be callable at par. What would be the yield to call? In what situation would the company call the bond? o 2.197% O 1.487% o 1.448% o 0.765% O When interest rates fall O When the bond's price rises O When current yield on the bonds falls O When interest rates rise From an investor's perspective, if the investor holds these P&G bonds in their portfolio the bonds' value in the fixed-income asset class in the portfolio will most likely rates fall, the value of bonds in the portfolio will and market interest rates rise, ; but if market interest