Question
Protect Your Check Financial Services has $1,000 face value bonds issued with a 7.2% coupon rate. They mature in 8 years, call for semi-annual payments,
Protect Your Check Financial Services has $1,000 face value bonds issued with a 7.2% coupon rate. They mature in 8 years, call for semi-annual payments, and currently have a yield to maturity of 7%. What will happen to the price of the bond if the market interest rate suddenly increases to 10%?
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
