The coupon rate of the bond is 5% with annual coupons and the yield to maturty is 3% a. What can you say about the price of the bond? b. What is the price of the coupon if it is a 10-year bond with a...


The coupon rate of the bond is 5% with annual coupons and the yield to maturty is 3%


a. What can you say about the price of the bond?

b. What is the price of the coupon if it is a 10-year bond with a face value of 5,000?
c. What is the one-year Rate of return (RET) on the 10-year bond (face value o 5000) if the yield to maturity raised to 6%? (Hint: calculate the price of the bond after one year and then proceed)



Jun 03, 2022
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