Question
A large industry bond carries a coupon rate of 7% and has a face value of $1000. The bond has 12 years until maturity and
A large industry bond carries a coupon rate of 7% and has a face value of $1000. The bond has 12 years until maturity and sells at a yield to maturity of 6%.
a) What interest payments do the bondholders receive each year?
b) At what price does the bond sell assuming annual interest payment?
c) What will happen to the bond price if the yield to maturity falls to 3%?
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Rich Dads Increase Your Financial IQ Get Smarter With Your Money
Authors: Robert T. Kiyosaki
1st Edition
1612680658, 978-1612680651
