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YYY Inc. issued 12% semi-annual coupon bond with maturity of 8 years and face value $1,000. What is the price you are willing to pay
YYY Inc. issued 12% semi-annual coupon bond with maturity of 8 years and face value $1,000. What is the price you are willing to pay for YYY Inc. bond if the yield to maturity is 10% ? (a) What would the % change in price for YYY, if the yield decreases to 9%. ZZZ Inc. issued a similar bond (same time to maturity, face value and yield at 10% as in YYY) but with a higher coupon rate. (b) Will the \% change in price for ZZZ higher or lower than YYY if the yield decreases to 9%
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