Question
Mangalram Jewelers just issued ten-year bonds that make annual coupon payments of 5 per cent. Suppose you purchased one of these bonds at par value
Mangalram Jewelers just issued ten-year bonds that make annual coupon payments of 5 per cent. Suppose you purchased one of these bonds at par value (Rs.1,000) when it was issued.
Right after your purchase, market interest rates increased, and the YTM on the bond rose to 6 percent. What is the new price of your bond?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
