If a coupon bond has two years to maturity, a coupon rate of 10%, a par...

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If a coupon bond has two years to maturity, a coupon rate of 10%, a par value of S900, and a yield to maturity of 14%, then the coupon bond will sell for $(Round your response to the nearest two decimal place The price of a bond and its yield to maturity are Which of the following statements is not true? O A. Current yield is a worse approximation of yield to maturity for long-term bonds when compared to short-term bonds. O B. The longer to maturity, the greater is the change in the price of a bond from the same size change in the interest rate O C. The coupon rate on a coupon bond is fixed once the bond is issued. O D. Bond prices vary inversely with the interest rate for both coupon bonds and discount bonds

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Answer 1

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Ans. The coupon bond would sell for $840.72 ( using the bond calculator )

C) The coupon rate on a coupon bond is fixed once the bond is issued

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