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Bond Features Maturity (years) = 5 Face Value = $1,000 Starting Interest Rate 6.00% Coupon Rate = 4.00% Coupon dates (Annual) If interest rates change
| Bond Features | |
| Maturity (years) = | 5 |
| Face Value = | $1,000 |
| Starting Interest Rate | 6.00% |
| Coupon Rate = | 4.00% |
| Coupon dates (Annual) |
If interest rates change from 6.00% to 3.00% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 3 ?
| A. | $28.58 |
| B. | $56.36 |
| C. | $28.86 |
| D. | $0.00 |
E.
| $55.80 |
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Summary Of Easy Money
Authors: David D. Truex
1st Edition
979-8862477078
