Question: Question 10 Consider a 10 year bond with face value $1,000, pays 6% coupon annually and has a yield-to-maturity of 7%. How much would the

Question 10

Consider a 10 year bond with face value $1,000, pays 6% coupon annually and has a yield-to-maturity of 7%. How much would the approximate percentage change in the price of bond if interest rate in the economy decreasesby 0.80% per year?

		increase by 5.98%
		increase by 5.55%
		decrease by 5.98%
		increase by 5.55%

Question 11

Calculate the cost of trade credit for the following terms offered by a supplier: 1/10, net 30.

		7.37%.
		10.53%.
		4.55%.
		18.43%.

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