Question

1. A 7.10 percent coupon bond with 15 years left to maturity is priced to offer a yield to maturity of 7.9 percent. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

2.

Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.)

3.15 percent coupon corporate bond (paid semiannually)
3.90 percent coupon Treasury note
Corporate zero-coupon bond maturing in 10 years

Answer 1

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