Question
A $1000 bond with a coupon rate of 5.4% paid semiannually has 10 years to maturity and a yield to maturity of 7.5%. What will
A $1000 bond with a coupon rate of 5.4% paid semiannually has 10 years to maturity and a yield to maturity of 7.5%. What will happen to the price of the bond after five years passes if interest rates remain the same?
| a) fall by $60 | ||
| b) rise by $12 | ||
| c) rise by $60 | ||
| d) The price of the bond will not change. |
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Advanced Bond Portfolio Management
Authors: Frank J. Fabozzi, Lionel Martellini, Philippe Priaulet
1st Edition
0471678902, 9780471678908
