Question
Consider the four bonds shown in the table below. Bond A B C D Coupon rate 12.00% 10.00% 11.00% 9.00% Yield to maturity 13.00% 8.50%
Consider the four bonds shown in the table below.
| Bond | A | B | C | D |
| Coupon rate | 12.00% | 10.00% | 11.00% | 9.00% |
| Yield to maturity | 13.00% | 8.50% | 11.00% | 10.50% |
| Years to maturity | 10 | 15 | 8 | 12 |
| State wheter the bond is trading at a discount, at par, or at a premium |
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Complete the last row of the table [4 marks]
By what percentage would Bond C change if the yield to maturity increases to 12.0%? [6 marks]
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
