Question
1.consider a ten-year bond with an 6% coupon rate and annual coupons is trading with a YTM of 6%, its bond price is___(Numerical Answer in
1.consider a ten-year bond with an 6% coupon rate and annual coupons is trading with a YTM of 6%, its bond price is___(Numerical Answer in the unit of dollars) Face value?
2.The bond is trading? at a discount, premium, or par.
3.Suppose right after you purchase the bond, the issuer is downgraded. then the YTM that is used to discount cash flows is? upgraded, downgraded, or neither
4.Suppose right after you purchase the bond the YTM increases to 8%, the bond price will become___(Numerical answer in the unit of dollars)face value?
5.Now is the bond trading at a premium, par, or discount?
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