Question: Problem 10-19 (calculator version) A $1,000 par value bond has a 10 percent coupon, which is paid on a semiannual basis. It matures in either

Problem 10-19 (calculator version) A $1,000 par value bond has a 10 percent coupon, which is paid on a semiannual basis. It matures in either 1 year or 20 years. Current yields on similar bonds

Problem 10-19 (calculator version) A $1,000 par value bond has a 10 percent coupon, which is paid on a semiannual basis. It matures in either 1 year or 20 years. Current yields on similar bonds are either 6 percent or 12 percent. a. Calculate the price of the bond for the four possibilities. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price of the bond 1 year 1 year 20 years 20 years 6 percent 12 percent 12 percent 6 percent b. What is the relationship between price and yield? Price and yield are (Click to select) Arelated. c. What is the relationship between bond price changes and time to maturity? Bond prices change (Click to select) 9 for a given yield change. b. What is the relationship between price and yield? related. Price and yield arv (Click to select Directly c. What is the rela Inversely bond price changes and time to maturity? Bond prices change (Click to select) for a given yield change. c. What is the relationship between bond price changes and time to maturity? Bond prices chang given yield change. (Click to select) less for longer terms, more for longer terms

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