You purchased a 30 year bond a year ago with a coupon interest rate and yield-to-maturity of 6%. Market interest rates today for bonds of similar risk and maturity are 13%. If you decide to sell your bond today, you would expect: a. To sell the bond for less than what you paid for the bond.
b. To sell the bond for more than what you paid for the bond.
c. That since the coupon of the bond does not change, the price of the bond has not changed.
d. That since the par value of the bond does not change, the price of the bond has not changed.
e. That since there is insufficient information to make a determination why interest rates changed, it is impossible to determine whether the price of the bond has increased or decreased.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You purchased a 30 year bond a year ago with a coupon interest rate and yield-to-maturity of 6%. Market interest rates today for bonds of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What are two ways in which long-term economic growth is measured?
Answers (1)
26. As mentioned in the text, managers in companies, with no foreign operations of any kind still need a global perspective, for all of the following reasons except:
Answers (1)
Hunt Incorporated sold $209,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis.
Answers (1)
The paradox of value explains: a. why entrepreneurs can only produce so much of a product. c. why diamonds typically have a higher monetary value than water. b. the role of technology as it applies to the factors of production. d.
Answers (1)
c. Productive efficiency occurs when a good or service (such as the distribution of tickets) is produced at the lowest possible cost. Is this an efficient way to distribute the tickets?
Answers (1)
New Questions in Business
A bank offers the following certificates of deposit: Nominal annual interest rate Term in years (convertible quarterly) 1 4% 3 5% 5 5.65% The bank does not permit early withdrawal. The certificates mature at the end of the term.
Answers (2)
Who makes more money uber drivers or lyft drivers?
Answers (2)
Becoming a manager means a profound transformation in the way people think of themselves, called personal, which includes letting go of deeply held attitudes and habits and learning new ways of thinking.
Answers (1)
What happens to supply when input costs go up? It increases because the good becomes cheaper to produce. It increases because the good becomes more expensive to produce. It decreases because consumers find a substitute product.
Answers (2)
n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010. The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned.
Answers (1)