Question: Please show how to solve in simplest way with work, if needed excel is acceptable: What is the impact to the coupon rate of $1,000
Please show how to solve in simplest way with work, if needed excel is acceptable:
What is the impact to the coupon rate of $1,000 par bond that pays $85.00 annual coupons if yield-to-maturity changes from 7.25% to 12.75% ? a.) cannot be determined without more information b.) the coupon rate decreases to 5.50% c.) the coupon rate increases to 12.75% d.) the coupon rate decreases to 7.25% e.) the coupon rate remains at 8.50%
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