Question
A $5,000 bond with a coupon rate of 6% paid semiannually has two years to maturity and a yield to maturity of 7.5%. If interest
A $5,000 bond with a coupon rate of 6% paid semiannually has two years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of thebond?
A.
fall by $32.16
B.
rise by $26.80
C.
fall by $26.80
D.
The price of the bond will not change.
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
