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13. A coupon bond paying semi-annual interest is reported as having an ask price of $1170 in the Wall Street Journal. If the last interest
13. A coupon bond paying semi-annual interest is reported as having an ask price of $1170 in the Wall Street Journal. If the last interest payment was made 2 months ago and the coupon rate is 6%, the invoice price of the bond will be _________.
14. You own a bond that has a Macaulay duration of 6 years. Interest rates are currently 7% but you believe the Fed is about to increase interest rates by 25 basis points. Your predicted percentage price change on this bond is ________.
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