A bond with 10 years until maturity and an 8% coupon rate traded at its par value

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A bond with 10 years until maturity and an 8% coupon rate traded at its par value of $1,000 yesterday. Its price jumps to $1,109.05 today. What apparently happens to the yield to maturity of the bond? (Assuming the coupons are paid semi-annually). Rates increased by about 2.0%. B Rates decreased by about 2.0%. (C) Rates increased by about .72%. D Rates decreased by about 1.5%. E Cannot be determine due to lack of information

Posted Date: May 18, 2024 10:09 AM

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A bond with 10 years until maturity and an 8% coupon rate traded at its par value

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