A $5,000 bond with a coupon rate of 6.4% paid semiannually has five years to maturity...

Question

Question

A $5,000 bond with a coupon rate of 6.4% paid semiannually has five

years to maturity and a yield to maturity of 8.6%. If interest rates rise and the yield to maturity increases to 8.9%,

what will happen to the price of the bond?

A.

fall by $56.25

B.

fall by $67.50

C.

rise by $56.25

D.

The price of the bond will not change.

Answer 1

Answer #1

10 nper pmt rate 5*2 5000*0.064/2 0.086/2 160 0.043 5000 $4,560.49 PV (-PV(0.043,10,160,5000,0)) (-PV(rate, nper,pmt,fv, type

Answer 2

Similar Homework Help Questions

A $5,000 bond with a coupon rate of 6.7% paid semiannually has five years to maturity...

A $5,000 bond with a coupon rate of 6.7% paid semiannually has five years to maturity and a yield to maturity of 8.7%. If interest rates rise and the yield to maturity increases to 9%, what will happen to the price of the bond? O A. rise by $56.41 OB. fall by $67.69 OC. fall by $56.41 OD. The price of the bond will not change.
A $5,000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to maturity of 7.8% ....

A $5,000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to maturity of 7.8% . If interest rates rise and the yield to maturity increases to 8.1% , what will happen to the price of the bond? a. fall by $82.87 b. rise by $82.87 c. fall by $99.44 d. The price of the bond will not change
A $1,000 bond with a coupon rate of 6.1% paid semiannually has five years to maturity and a yield to maturity of 9%. I...

A $1,000 bond with a coupon rate of 6.1% paid semiannually has five years to maturity and a yield to maturity of 9%. If interest rates rise and the yield to maturity increases to 9.3%, what will happen to the price of the bond? A. rise by $ 10.94 B. fall by $ 13.13 C. fall by $ 10.94 D. The price of the bond will not change

A $5,000 bond with a coupon rate of 5.4% paid semiannually has eight years to maturity...

A $5,000 bond with a coupon rate of 5.4% paid semiannually has eight years to maturity and a yield to maturity of 6.5%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? A. rise by $ 243.62 B. rise by $ 341.07 C. fall by $ 243.62 D. fall by $ 292.35
A $5,000 bond with a coupon rate of 5.3% paid semiannually has eight years to maturity...

A $5,000 bond with a coupon rate of 5.3% paid semiannually has eight years to maturity and a yield to maturity of 6.9%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? O A. fall by $235.32 O B. rise by $235.32 O C. fall by $282.39 O D. rise by $329.45
A $5,000 bond with a coupon rate of 5.7% paid semiannually has four years to maturity...

A $5,000 bond with a coupon rate of 5.7% paid semiannually has four years to maturity and a yield to maturity of 6.8%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A $1,000 bond with a coupon rate of 5.6% paid semiannually has four years to maturity...

A $1,000 bond with a coupon rate of 5.6% paid semiannually has four years to maturity and a yield to maturity of 6.7%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? O A. rise by $27.49 OB. rise by $38.49 O C. fall by $32.99 OD. fall by $27.49
A $1,000 bond with a coupon rate of 5.1% paid semiannually has ton years to maturity...

A $1,000 bond with a coupon rate of 5.1% paid semiannually has ton years to maturity and a yield to maturity of 6.9%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? O A. rise by $54.45 O B. fall by $54.45 O c. rise by $76.23 OD. fall by $65.34
Urgent!!! Please answer within one hour. A $5,000 bond with a coupon rate of 5.1% paid...

Urgent!!! Please answer within one hour. A $5,000 bond with a coupon rate of 5.1% paid semiannually has nine years to maturity and a yield to maturity of 7.3%. If interest rates rise and the yield to maturity increases to 7.6%, what will happen to the price of the bond? O A. O B. O C. O D. rise by $87.73 fall by $105.28 fall by $87.73 The price of the bond will not change.

4) A $1000 bond with a coupon rate of 7.0 % paid semiannually has ten years...

4) A $1000 bond with a coupon rate of 7.0 % paid semiannually has ten years to maturity and a yield to maturity of 8.1%. If the yield to maturity increases to 8.4%, what will happen to the price of the bond? A) The price of the bond will rise by $19.05. C) The price of the bond will fall by $22.86. B) The price of the bond will fall by $19.05. D) The price of the bond will not...

A $5,000 bond with a coupon rate of 6.4​% paid semiannually has five years to maturity...