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A ten-year bond has 11.5% coupon rate and has just been issued at face value of $1000. The bond makes semi-annual coupon payments. Blank #1:
A ten-year bond has 11.5% coupon rate and has just been issued at face value of $1000. The bond makes semi-annual coupon payments. Blank #1: What is the price of the bond if interest rate falls to 9.5%? Instruction: Round your answer to 2 decimal places. Do not include any symbol, number only. Blank #2: What is the percentage change in the price of this bond resulting from the fall in interest rate? (Hint: Percentage change - (New Price - Old Price) / Old Price * 100%) Instruction: Round your answer to 2 decimal places. Keep the positive (*) or negative (-) sign to indicate increase or decrease in bond price. Blank # 1 Blank # 2 AJ A ten-year bond has 11.5% coupon rate and has just been issued at face value of $1000. The bond makes semi-annual coupon payments. Blank #1: What is the price of the bond if interest rate falls to 9.5%? Instruction: Round your answer to 2 decimal places. Do not include any symbol, number only. Blank #2: What is the percentage change in the price of this bond resulting from the fall in interest rate? (Hint: Percentage change - (New Price - Old Price) / Old Price * 100%) Instruction: Round your answer to 2 decimal places. Keep the positive (*) or negative (-) sign to indicate increase or decrease in bond price. Blank # 1 Blank # 2 AJ
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