Question: For the next 3 question; consider the same bond: A 10-year bond pays $40 annual coupons and has a par value of $1,000. It's currently

For the next 3 question; consider the same bond: A 10-year bond pays $40 annual coupons and has a par value of $1,000. It's currently selling for $985. Find the YTM:

2. If the YTM goes up by 125 points, what is the new bonds price?

considering a 10-year bond pays $40 annual coupons and has a par value of $1,000. It was initially selling for $985 and then its YTM went up by 125 points.

If a company planned to issue 100 bonds, by how much did the increase in the yield reduce the funds it would raise from the sale?

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