What is the coupon rate of an eight year

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1. A $1,000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity (YTM) of 8.30%. If the YTM increases to 8.70%, what will happen to the price of the bond?

A. The price of the bond will fall by $18.93

B. The price of the bond will rise by $15.77

C. The price of the bond will fall by $20.96

D. The price of the bond will not change

2. What is the coupon rate of an eight year, $10,000 bond with semiannual coupons and a price of $9,006.66, if it has a yield to maturity of 6.5%?

A. 3.64%

B. 4.89%

C. 2.44%

D. 5.48%

Reference no: EM132036609

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