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A $5,000 bond with a coupon rate of 5.9% paid semiannually has eight years to maturity and a yield to maturity of 6.3%. If interest
A $5,000 bond with a coupon rate of 5.9% paid semiannually has eight years to maturity and a yield to maturity of 6.3%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? A. rise by $353.12 B. fall by $252.23 C. fall by $302.67 D. rise by $252.23 How much will the coupon payments be of a 25-year $10,000 bond with a 4.5% coupon rate and semiannual payments? A. $75 B. $900 C. $450 D. $225
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