8 What do you expect to happen if you buy a bond at par and hold...

Transcribed Image Text:

8 What do you expect to happen if you buy a bond at par and hold it till maturity? 9 If a 10 year bond has a coupon rate of 4% and prevailing rates are 5% what should you expect to pay for the bond? (Assume $1,000 bond with annual interest payments) 10 A 10 year US Treasury bond has a coupon payment of 6%. The yield to maturity is 5%. You want to buy the bond, how much will you pay for it? 8 What do you expect to happen if you buy a bond at par and hold it till maturity? 9 If a 10 year bond has a coupon rate of 4% and prevailing rates are 5% what should you expect to pay for the bond? (Assume $1,000 bond with annual interest payments) 10 A 10 year US Treasury bond has a coupon payment of 6%. The yield to maturity is 5%. You want to buy the bond, how much will you pay for it?