3. Seekers Inc. issued 15-year bonds a year ago at a coupon rate of 4.1%. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 4.5%, what is the current bond price? COLOC # or w oba * O (97) "Oba X o Mail - Ros x W The Poe Google D x Myt ment/d/11JXBykYYQVn14ZzIvMDpO9fR7Q1Q1jpVvhXtciycx6s/edit at Tools Add-ons Help amal text - Arial All changes saved in Drive , 11 . B IV A co + IEE 2 GHA Chapter 7 Name:__rosemary millington Date: 1. Suppose you buy a 7% coupon, 20-year bond today when it's first issued. If interest rates suddenly rise to 15%, what happens to the value of your bond? Why? Bond price is the present value of all future, cash payments receivable from bond discounted at market rate of interest. The future cash flows which are 7% of the face value of the bond will be discounted at higher rate of 15% the present value of the bond will reduce, because the market rate of interest is higher the coupon rate of the bond 2. Suppose a company issues a bond with a par value of $1.000 23 years to mature and a Chp