Annual coupon bond with a required return

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Reference no: EM131596237

Consider a 15-year, 12 percent annual coupon bond with a required return of 8 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 1,342.38.

II. If interest rates rise to 10 percent, the price of the bond would be 1,152.12.

III. If interest rates rise to 10 percent, the percentage change in price would be -11.47 percent.

I only

II only

I and II only

I and III only

I, II, and III

Reference no: EM131596237

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