A13

1 Quetiou.m, What is the relationship bemeen changes in interest rates and bond values? HO"' is this relationship affected by the time to maturity? By the coupon rate? 7 Question-21 A particular bond is Observed to have a coupon rate Of 6 per cent and a yield to maturity that is also 6 per cent. 10 a. What do you know about the value of the bond? would you know if the yield to maturity were (b) 7 per ceni? (c) 6.5 per cent? 12 b.