# A $1000, 9.5% coupon Government of Canada bond has 10 years remaining until its maturity. It is

## Question:

a. What is the bond’s yield to maturity?

b. If the bond price abrupt lyrisesby$25, what is the change in its yield to maturity?

Coupon

A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...

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