Microchip Corp has issued a bond which carries a 9 percent coupon and paid semiannually The face value of its bond is $1,000, and the bond mature in 13 years If the bond is priced to yield 7 so, 1 What is the price of Microchirp Corp's bond 2 What would be the price of the bond if the yield rose to 10 3 What is the current yield on the bond if the YTM is 8 4 Explain the meaning your result

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Question: Microchip Corp has issued a bond which carries a 9 percent coupon and paid semiannually. The face value of its bond is $1,000, and the

Microchip Corp has issued a bond which carries a 9 percent coupon and paid semiannually. The face value of its bond is $1,000, and the bond mature in 13 years. If the bond is priced to yield 7% so,

1 What is the price of Microchirp Corp's bond?
2 What would be the price of the bond if the yield rose to 10%?
3 What is the current yield on the bond if the YTM is 8%?
4 Explain the meaning your result?

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