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Last year, Forest Products issued both 5-year and 15-year bonds at par. The bonds each have a coupon rate of 6.5 percent, paid semiannually, and
Last year, Forest Products issued both 5-year and 15-year bonds at par. The bonds each have a coupon rate of 6.5 percent, paid semiannually, and a face value of $1,000. Assume the yield to maturity on each of these bonds is now 7.47 percent. What is the percentage change in the price of the 5-year bond since it was issued? The 15-year bond?
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