Question: Answer each question by providing the most appropriate answer. 1)A 10-year corporate bond has a coupon rate of 5% with annual payments.If interest rates rise
Answer each question by providing the most appropriate answer.
1)A 10-year corporate bond has a coupon rate of 5% with annual payments.If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace?
2)A 10-year corporate bond has a coupon rate of 5% with quarterly payments.If interest rates rise to 8% on similar bonds, then what is the value of the bond in the marketplace?
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