A year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of
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Question:
A year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent, are paid semiannually, and have a face value of $1,000. Today, the market yield on these bonds is 7.2 percent. What is the percentage change in the price of the bond over the past year?
Expert Answer:
To calculate the percentage change in the price of the bond over the past year we need to compare th... View the full answer
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