Question: NEED HELP ASAP will rate(: A $1,000 bond with a coupon rate of 5.6% paid semiannually has ten years to maturity and a yield to

NEED HELP ASAP will rate(: NEED HELP ASAP will rate(: A $1,000 bond with a coupon rate

A $1,000 bond with a coupon rate of 5.6% paid semiannually has ten years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of the bond? A. fall by $22.57 B. rise by $18.81 C. fall by $18.81 D. The price of the bond will not change

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1) The market for short-term debt is known as A) the money market. C) the notes market. B) the bond market. D) the capital market. 1) 2) A commercial bank will loan you $7,500 for two years to buy a...

Need help 14 and 15 1-3 10) A$5000 bond with a coupon rate of 52% paid semiannually has ten years to maturity and ayieldL to maturity of 7 If interest rates fall and the yield to maturity decreases...

A $1,000 bond with a coupon rate of 5.6% paid semiannually has ten years to maturity and a yield to maturity of 75% If interest rates rise and the yield to maturity increases to 7.8%, what will...

The Frisco Company just paid $2.20 as its annual dividend. The dividends have been increasing at a rate of 4% annually and this trend is expected to continue. The stock is currently selling for...

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $200,000. The Sisyphean Company expects cash inflows from this project as...

a $5000 bond with a coupon rate of 5.6% paid semiannually has two years to maturity and a yield to maturity of 7.8%. if interest rates rise and the yield to maturity incleases to 8.1%, what will...

A $5,000 bond with a coupon rate of 5.6% paid semiannually has two years to maturity and a yield to maturity of 8.9%. If interest rates rise and the yield to maturity increases to 9.2%, what will...

A$5,000 bond with a coupon rate of 5.6% paid semiannually has eight years to maturity and a yield to maturity of 8.9%. If interest rates rise and the yield to maturity increases to 9.2%, what will...

A $1.000 bond with a coupon rate of 5.6% paid semiannually has two years to maturity and a yield to maturity of 7.1%. If interest rates rise and the yield to maturity increases to 7.4%, what will...

Please show your calculator work if possible A $5,000 bond with a coupon rate of 5.6% paid semiannually has nine years to maturity and a yield to maturity of 7.3%. If interest rates rise and the...

In an integrated global equity market, cross-listed stocks and their domestic-market counterparts should have the same price if they are simultaneously bought and sold in order to profit from...

The force F has a component of 40 N in the x-y plane as shown. Express F as a cartesian vector. Also find the coordinate direction angles (i.e a, 3, y) of F.

A single taxpayer ( " Taxpayer " ) uses a fiscal year of March 1 to February 2 8 . The due date of the Taxpayer's Federal Income tax return is April 1 5 of each tax year. True False

Which of Hofstedes dimensions analyzed the relationship between work and gender roles? Power distance Masculinity versus femininity Long-term orientation Time orientation 2. Hofstede's study isolated...

2. As a class, discuss the ethical principles refl ected in the communication behaviors discussed in this chapter. What ethical principles underlie confi rming communication and disconfi rming...

4. When is it appropriate to show grace toward others?

1. What kinds of communication foster defensive and supportive communication climates?