Question
How much will an investor pay for a bond that has a coupon rate of 9%, is semiannual, and has a maturity of 9 years
How much will an investor pay for a bond that has a coupon rate of 9%, is semiannual, and has a maturity of 9 years if the current interest rate is 5%?
|
| $1159.42 | |
|
| $1261.10 | |
|
| $1287.07 | |
|
| $1932.97 |
What happens to the price of a bond if the market interest rate decreases from 9.5% to 9%? The annual bond has a coupon rate of 10% and 8 years left to maturity.
|
| the price falls by $28.18 | |
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| the price falls by $26.68 | |
|
| the price rises by $28.18 | |
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| the price rises by $26.68 |
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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
0415720060, 978-0415720069
