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Use the information below to answer questions 6 - 8 Bond A Bond B Bond C Bond D Coupon 5% 7% 11% 11% Current Price

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Use the information below to answer questions 6 - 8 Bond A Bond B Bond C Bond D Coupon 5% 7% 11% 11% Current Price $ 703.11 $ 932.05 $1,078.63 $1,296.89 Remaining Term 20 years 10 years 3 years 20 years What is the current market interest rate'? 6% 4% 10% O 8 Given only the information provided, which bond would you suspect of having the highest duration? Bond C Bond B Bond A Bond D If interest rates rise to 12%, what will be the new price of Bond D? 514.49 1283.92 924.77 1309.86

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