Question #1

Question #2

Q 8.53: An investor buys a 10-year bond that pays interest annually and has a 5 percent coupon and a 6 percent yield. Immediately after she buys the bond interest rates fall to 5 percent. If rates don't change again what will be her annual compound rate of return over the 10-year period? Q 8.60: Bond A has a face value of $1000, a 5.3 percent coupon paid semiannually, a 6.2 percent yield and 9 years to maturity. Bond B has identical terms, but has a zero percent coupon. If yields decrease to 4.7 percent on both, the percentage change in the price of Bond B ismore than the price of Bond A. Q 8.53: An investor buys a 10-year bond that pays interest annually and has a 5 percent coupon and a 6 percent yield. Immediately after she buys the bond interest rates fall to 5 percent. If rates don't change again what will be her annual compound rate of return over the 10-year period? Q 8.60: Bond A has a face value of $1000, a 5.3 percent coupon paid semiannually, a 6.2 percent yield and 9 years to maturity. Bond B has identical terms, but has a zero percent coupon. If yields decrease to 4.7 percent on both, the percentage change in the price of Bond B ismore than the price of Bond A