Question
For a 3-year Treasury bond with a par value of $1,000 and an annual coupon rate of 7%, a. Consider a scenario where the current
For a 3-year Treasury bond with a par value of $1,000 and an annual coupon rate of 7%,
a. Consider a scenario where the current market nominal interest rate is 4%, and you decide to purchase this bond at Price1.
b.However, immediately after your purchase, the market nominal interest rate rises to 9%. What impact will this have on the price of the bond you just bought?
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Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
