Question c

Problem 6-5 Bond Pricing (LO1, 2) A General Power bond with 10 of 7%. (Assume annual interest payments.) 00 par value carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity a. What interest payments do bondholders receive each year? Interest payments$80 b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price 1,08 15 c. What will appen to the bond price if the yield to maturity falls to 6%? Do not round intermediate calculations. Round your answer to 2 decimal places.) Price will rise by Prey 4 of 18 l! Next