What happens to the bond yield to maturity

Reference no: EM132650323

Question 1: Bond Yields. A 30-year Treasury bond is issued with face value of $1,000, paying interest of $60 per year. If market yields increase shortly after the T-bond is issued, what happens to the bond's:

a. coupon rate?

b. price?

c. yield to maturity?

d. current yield?

Question 2: Bond Yields. If a bond with face value of $1,000 and a coupon rate of 8% is selling at a price of $970, is the bond's yield to maturity more or less than 8%?

Reference no: EM132650323

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