Question: Answer the following on bonds.... A.) All else constant, a coupon bond selling at a premium must have _______? B.) You purchase a zero-coupon bond
Answer the following on bonds....
A.) All else constant, a coupon bond selling at a premium must have _______?
B.) You purchase a zero-coupon bond that has a yield-to-maturity of 6.33 percent and 12 years until it fully matures. What is the current price of this bond if the face value s $1,000?
C.) Now you decide to purchase a15-year, 6% coupon bond that pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond if the market yield-to-maturity rises to 6.5% from the current rate of 6.25%?
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