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1)Two bonds have the same maturity date, July 15, 2030. Bond #1 has a coupon rate of 3% and Bond #2 has a coupon rate
1)"Two bonds have the same maturity date, July 15, 2030. Bond #1 has a coupon rate of 3% and Bond #2 has a coupon rate 10%. Assume the yield rise by 1%. Which statement it true?" a)Bond #1 ?s price will fall more than Bond #2? price will fall. b)Bond #1 ?s price will fall less than Bond #22 price will fall c)Bond #1 ?s price will fall the same percent as Bond #2? price will fall 2) "Two bonds have the same coupon rate, 5%. Bond #1 has a coupon matures in 2 years and Bond #2 matures in 10 years. Assume the yields for each of the bonds falls by 1%. Which statement it true?" a)Bond #1 ?s price will rise more than Bond #2? price will rise. b)Bond #1 ?s price will rise less than Bond #2? price will rise c)Bond #1 ?s price will rise the same percent as Bond #2? price will rise 3)Which statement is true? a)Yield rises when price rises b) Yield falls when price rises c)Yield and price have no relationship 4)"A Treasury bond matures on August 15, 2032. Its coupon rate is 2.50% and face value is $100. Its price is 99.64. How much is its yield to maturity on April 3, 2020?" a)2.53 b)2.5 c)2.51 d)2.60
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