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Q 1 . a 5 year bond trading at par with 1 0 % coupon will change in price by what percentage if the yield
Q a year bond trading at par with coupon will change in price by what percentage if the yieldtomuturity changes to provide an answer to the change in price in one decimal place and assume a face value of
The information below refers to questions and :
Bond Par Value Int rate Years Yiled
L
M
N
the above shows the annual coupon interest rate, par value, years of muturity and yield of maturity for three bonds: L M N
Q Determine the current price of bond L is the bond trading at a discount, premium or par?
Q Determine the current price of bond M is the bond trading at a discountpremium or par what would happen to the price of the bond if the yield to muturity increases?
Q explain one of the risks faced by bond investors.
thank you in advance for the help!!
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