In Bloomberg, you observe a treasury bond priced at 1478.4. Upon examining its original details, you note an 8% coupon rate, a par value of 1000, and a maturity of 10 years. You are now assisting the government in issuing another bond with a 10-year maturity and a 1000 par value. However, this bond has a coupon rate of 9%.

What should its price be?

Answer rating: 100% (QA)

To determine the price of the second bond with a 9 coupon rate we need to consider that the market h... View the full answer