Question

Suppose you bought a 15-year $1,000 face-value bond for $945 one year ago. The annual coupon...

Suppose you bought a 15-year $1,000 face-value bond for $945 one year ago. The annual coupon rate is 7% and interest payments are paid annually. If the price today is $995, the yield to maturity must have changed from _____________ to ______________.

  • 8.12%; 6.94%
  • 7.12%; 8.11%
  • 7.63%; 7.06%
  • 9.11%; 9.35%
  • None of the above

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