Question: Please show how to solve in simplest way with work, if needed excel is acceptable: Roland owns a corporate bond with an 8% coupon that
Please show how to solve in simplest way with work, if needed excel is acceptable:
Roland owns a corporate bond with an 8% coupon that matures in 10 years. David owns a corporate bond with a 12% coupon rate that matures in 25 years. If market interest rates (YTM) go up, then ____ . a.) value of both bonds will decrease b.) value of Roland's bond will decrease and the value of David's bond will increase c.) value of David's bond will increase more than the value of Roland's bond due to the longer time till maturity d.) value of both bonds will remain the same because they were both purchased in an earlier time period before interest rates changed
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