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IBM issued a 10yr coupon bond at 1000, and 1 yr later the price has declined to 950, answer the following: (Fill in the blanks
IBM issued a 10yr coupon bond at 1000, and 1 yr later the price has declined to 950, answer the following: (Fill in the blanks with >, <, or =)
Is the coupon rate greater than, less than, or equal to current yield?
Coupon rate ____ Current yield
Is the coupon rate greater than, less than or equal to yield to maturity?
Coupon rate ____ Yield to maturity
If IBM issues a new bond of similar maturity (now 9 years), will the new bond's coupon be greater than less than or equal to the existing bond's coupon? Old bond coupon ____ New bond coupon
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