Bond Yield a 30 year Treasury bond is issue with a face value of 1000 paying interest

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Bond Yield a 30 year Treasury bond is issue with a face value of 1000 paying interest of 60 per year. If market yields increase shortly after the T-bond is issue, what happens to the bonds?

1. Coupon rate

2. Price

3. Yield to maturity

4. Current yield


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...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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