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A General Power bond with a face value of $1,000 carries a coupon rate of 9.3%, has 9 years until maturity, and sells at a
A General Power bond with a face value of $1,000 carries a coupon rate of 9.3%, has 9 years until maturity, and sells at a yield to maturity of 8.3%. (Assume annual interest payments.) |
a. | What interest payments do bondholders receive each year? |
b. | At what price does the bond sell?(Do not round intermediate calculations. Round your answer to 2 decimal places.) |
c. | What will happen to the bond price if the yield to maturity falls to 7.3%?(Do not round intermediate calculations. Round your answer to 2 decimal places.) |
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