Sold bond with maturity, Suppose ACE Corporation sold a

Sold bond with maturity

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Reference no: EM131022565

Suppose ACE Corporation sold a bond with 12-year maturity, $1,000 par value, and 8.5% coupon rate (semi-annual payment). a). Three years after the bonds were sold, the yield to maturity drops to 6%. How much would ACE bonds be selling for? b). Suppose 3 years after the initial offering, the yield has risen to 11%. How much would ACE bonds be selling for?

Reference no: EM131022565

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