question archive Consider a 10-year, 6 percent annual coupon bond with a required return of 4 percent
Consider a 10-year, 6 percent annual coupon bond with a required return of 4 percent
Subject:AccountingPrice: Bought3
Consider a 10-year, 6 percent annual coupon bond with a required return of 4 percent. The bond has a face value of $1,000. Which of the following is correct? Round your calculations/answers to two decimals.
I)The price of the bond is 1,162.22.
II) If interest rates decline to 3 percent, the price of the bond would be 1,255.91.
III) If interest rates decline to 3 percent, the percentage change in price would be 8.06 percent.
