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Say you have an 8% coupon annual bond (first coupon in one year) that matures in 5 years and has a face value of $1,000
Say you have an 8% coupon annual bond (first coupon in one year) that matures in 5 years and has a face value of $1,000 and a yield of 6% What is this bonds price? What is the percentage change in price if the yield increases to 9% Now assume the yield is 6% again. What is the price of this bond immediately before the first coupon payment? What is the price immediately AFTER the first coupon payment? Continue to assume a yield of 6%. What is the price of this bond immediately after the third coupon? What about immediately after the fourth payment
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