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You have been hired as a bond analyst at Black Rock Fund, you have the following four coupon paying bond (face Value=$1000). Answer the
You have been hired as a bond analyst at Black Rock Fund, you have the following four coupon paying bond (face Value=$1000). Answer the questions below: Band #1 #2 #3 #4 YTM 9% 7% 8% 10% Coupon Rate 8% 7% 9% 9% Years to Maturity 5 10 5 15 1. What is the value of each of the four bonds? 2. Which of these bonds sells at a discount? 3. Which of these bonds sells at a premium? 4. Which of these bonds sells at a par? 5. Which of these bonds sells at a discount? 6. Which bond's price would be most sensitive to this change in YTM, if it is increased by 2%?
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