Caterpillar Inc has issued bonds with semi annual coupon payments on a coupon rate of 8 50 p a The bonds will mature in 6 years' time and have a principal amount of $1,000 These are priced using a yield of 12 p a compounded semi annually Suppose the yield rose immediately to 14 p a compounded semi...

Answer The price of the bond would decrease by 13333 Explanation The reason for this is that when the yield goes up it means that investors are demand ...

Caterpillar Inc. has issued bonds with semi-annual coupon payments on a coupon rate of 8.50% p.a....

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Business Math

ISBN: 978-0133011203

10th edition

Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

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Caterpillar Inc. has issued bonds with semi-annual coupon payments on a coupon rate of 8.50% p.a....

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Answer The price of the bond would decrease by 13333 Explanation The reason for this is that when the yield goes up it means that investors are demand... View the full answer

Business Math

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