What interest payments do bondholders receive

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A General Power bond carries a coupon rate of 8.3%, has 9 years until maturity, and sells at a yield to maturity of 7.3%. (Assume annual interest payments.)

Question a. What interest payments do bondholders receive each year?

Question b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Question c. What will happen to the bond price if the yield to maturity falls to 6.3%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Question d. If the yield to maturity falls to 6.3%, will the current yield be less, or more, than the yield to maturity?

A. Interest payments?

B. Price?

C. Price will? (rise/fall) By?

D. Current yield is (more/less)

Reference no: EM132477469

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