1. A $20-$year, $6\mathrm{.}5$ percent coupon bond pays interest annually. The bond has a face value of $$1,000.$ What is the percentage change in the price of this bond if the market yield to maturity falls to $5\mathrm{.}7$ percent from the current rate of $6\mathrm{.}5$ percent?

2. You purchased a bond $2$ years ago for $$685\mathrm{.}43.$ Today the bond is priced at $705\mathrm{.}27,$ and it matures in $11$ years. The bond provides a $5\mathrm{.}6\%$ coupon and pays interest annually. Assuming a par value of $$1,000,$ what is the Yield to Maturity on this bond? 

 

 

 

 

 

Answer rating: 100% (QA)

1 Given Face value of bond 1000 Coupon rate 65 Coupon paid annually Current yield to maturity 65 ... View the full answer