Suppose you buy a 9 percent coupon, 15-year bond today when it's first issued. If interest rates

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Suppose you buy a 9 percent coupon, 15-year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why?

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Question Posted: Sep 19, 2012 04:44 AM

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Suppose you buy a 9 percent coupon, 15-year bond today when it's first issued. If interest rates

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Since the yield increased the price of the bond will decre...View the full answer

Fundamentals of Investments Valuation and Management

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