The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?
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- If you expect the inflation rate to be 15 percent next year and a one - year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is _________
- If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the real rate of interest? A: 10.0 percent B: 4.1 percent C: 5.8 percent D: 14.0 percent
- If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is _________.
- A five-year treasury bond with a coupon rate of 8 percent has a face value of $1,000. What is the semiannual interest payment? A: $80 B: $40 C: $100 D: $50
- Which of the following $1,000 face-value securities has the highest yield to maturity?? ; ;A 15 percent coupon bond selling for $1,000|;A 5 percent coupon bond selling for $1,000|A 10 percent coupon bond selling for $1,000|;A 15 percent coupon bond selling for $900