Question: QUESTION 5 Brazil has a bond maturing in exactly five years. The bond has a coupon rate of 8.31% paid semi-annually and a face value

QUESTION 5

Brazil has a bond maturing in exactly five years. The bond has a coupon rate of 8.31% paid semi-annually and a face value of $1,000. The bond is currently yielding 14% APR with semi-annual compounding. What price should this bond trade at today?

		Less than $750
		Between $750 and $850
		Between $850 and $950
		Between $950 and $1,050
		More than $1,050

QUESTION 5A

Is the following statement true or false:

As interest rates rise, bond prices decrease.

		True
		False

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