Consider a $10,000 face-value, semi-annual corporate bond with a 6% annual coupon rate. What is the fair market value of the bond if comparable bonds have a yield to maturity of 8%? The tenure of the bond is 5 years, What happens to the value of this bond if the market interest rate falls from 8% to 7%?

Answer rating: 100% (QA)

A C D E 1 When Interes Rate Falls 2 Face Value 10000 Face Value 10000 3 Componding In Year ... View the full answer