Question

A $5000 bond with a coupon rate of 4.2% paid quarterly has eight years to maturity...

  1. A $5000 bond with a coupon rate of 4.2% paid quarterly has eight years to maturity and a yield to maturity of 6.3%. If interest rates rise and the yield to maturity increases to 6.6%, how much will the price of the bond change?

    A.

    The price will increase by $83.44.

    B.

    The price will decrease by $84.71.

    C.

    The price will decrease by $83.44.

    D.

    The price will decrease by $85.36.

Homework Answers

Answer #1

Answer D

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