a ABC Corp, issued a 12 percent, 20 year coupon rate bond 5 years ago. Interest rates are now 8 percent Based on semi-annual analysis and using the table below or your calculator, what is the current price of the bond? Period 8 89 PV of $1 Percent 4% 6% .355 .417 .456 .312 308 ...174 208 .097 15 20 30 40 .315 12% .183 104 .033 011 .215 PV of an annuity of $I Percent 69 12 9.712 8.559 6.811 11.470 9.818 7.469 13.765 11.258 8.005 15.046 11.925 8.244 11.118 13.590 17.292 19.793 099 .046 7 F A B I E E % 8 ? m 5 ? As the yield to maturity on a bond increases, the duration also increases, because of the effect of present value on duration (True/False) Select one: True O False The duration of a ten year 10 percent $1,000 bond at a market rate of 6 percent is exactly equal to the duration of the same bond at a 14 percent m Select one: True False