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Suppose that you are considering investing in a 4-year bond that has a face value of $1,000 and a coupon rate of 5.7% a.) If
Suppose that you are considering investing in a 4-year bond that has a face value of $1,000 and a coupon rate of 5.7% a.) If the market interest rate on similar bonds is 5.7%, the price of the bond is $1,000 (Round your response to the nearest cent) The bond's current yield is 5.7% (Round your response to two decimal places.) b.) Suppose that you purchase the bond, and the next day the market interest rate on similar bonds falls to 4.7% The price of the bond will be $ (Round your response to the nearest cent.)
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