Question
TU Inc. recently issued a new bond that matures in 10 years. It has a par value of $1,000 and an annual coupon of 6%.
TU Inc. recently issued a new bond that matures in 10 years. It has a par value of $1,000 and an annual coupon of 6%. If the current market interest rate is increasing from 6% to 10%, how much will the bonds decline in value?
A. No Change
B. 245.78
C. 754.22
D. 1294.40
E. 1000.00
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Financial Markets And Institutions An Introduction To Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
3rd Edition
0073250937, 9780073250939
