Suppose your friend tells you that she recently purchased a 15-year $3,000.00 bond with a 5%...

 

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Suppose your friend tells you that she recently purchased a 15-year $3,000.00 bond with a 5% coupon. A month later, she saw it quoted at 109:4, but she does not know what this means. You can tell by the way the bond is priced that she has a You explain that the market price of her bond is now , meaning it is now a bond; otherwise it would have been priced bond. Based on the market price of the bond you calculated, you can tell that market interest rates have gone yield of the bond is now since the bond was issued. The current Suppose your friend tells you that she recently purchased a 15-year $3,000.00 bond with a 5% coupon. A month later, she saw it quoted at 109:4, but she does not know what this means. You can tell by the way the bond is priced that she has a You explain that the market price of her bond is now , meaning it is now a bond; otherwise it would have been priced bond. Based on the market price of the bond you calculated, you can tell that market interest rates have gone yield of the bond is now since the bond was issued. The current