Question
Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3% Face value $1,000 Annual Coupons When you buy the bond
Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 3%
Face value $1,000
Annual Coupons
When you buy the bond the interest rate is 6%
Right after you buy the bond, the interest rate changes from 6.00% to 5.00% and remains there.
What is the price effect in year 3?
Group of answer choices
A. $21.26
B. $28.30
C. $25.73
D. $26.89
E. $23.39
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Inside Company Valuation
Authors: Angelo Corelli
1st Edition
3319537822, 9783319537825
