Question: Your company issues 8.5% coupon bonds with a face value of $1,000. These bonds have 14 years to maturity, make semiannual payments, and have a

Your company issues 8.5% coupon bonds with a face value of $1,000. These bonds have 14 years to maturity, make semiannual payments, and have a yield to maturity of 12%.

6a. What is the current price of the bonds?

6b. If interest rates fall to 10%, what would the price be?

6c. What is the relationship between bond prices and interest rates?

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