Credit ratings on brazilian government bonds

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Reference no: EM132020555

1. If credit ratings on Brazilian government bonds issued in 2015 are cut by bond rating agencies in 2018, the following will place:

a) Interest rates on new bonds to be issued will go down and prices for outstanding bonds will go up.

b) Interest rates on new bonds to be issued will go up and prices for outstanding bonds will also go up.

c) Interest rates on new bonds to be issued will go up and prices for outstanding bonds will go down.

d) Interest rates on new bonds to be issued will go down and prices on outstanding bonds will also go down.

2. Stilley Resources bonds have 20 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 18.5 percent.

Compute If the price of the bond is $1,530, what is the yield to maturity? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM132020555

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