Question: You bought 2 0 year bonds which has a total Face Value of 5 , 0 0 0 , 0 0 0 and has a

You bought 2 0 year bonds which has a total Face Value of 5 , 0 0 0 , 0 0 0 and has a coupon rate of 6 . 5 % paid semi - annually: a ) Assume the above bond has a price quote of 1 0 7 immediately after issuance, what is the yield of the bond? b ) If the market interest rate changes to 4 % at the beginning of year 4 , what is the price of the bond at beginning of year 4 ? c ) As a bomdholder do you want the yield to go up or down? Please explain why

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