What must the coupon rate be on bonds

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1. You own a fixed-income asset with a duration of six years. If the level of interest rates, which is currently 7.6%, goes down by 15 basis points, how much do you expect the price of the asset to go up (in percentage terms)?

2. You purchase a bond with a coupon rate of 6.7 percent and a clean price of $1,020. If the next semiannual coupon payment is due in four months, what is the invoice price?

3. Ashes Divide Corporation has bonds on the market with 12 years to maturity, a YTM of 11.0 percent, and a current price of $1,166.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round your intermediate calculations.)

Reference no: EM131896750

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