Question
Consider an ten-year, 15.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12.5 percent. What
Consider an ten-year, 15.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 12.5 percent.
What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Price of the bond | $ |
If the rate of interest increases 1 percent, what will be the bonds new price? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
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