Bond, Price, Coupon Rate and Yield to Maturity
Not what you're looking for?
A 1-year Corporate bond is issued with a face value of $100,000, paying interest of $2,500 semi-annually.
If market yields decrease shortly after the T-bond is issued, what happens to the bond's:
Price
Coupon Rate
Yield to Maturity
Purchase this Solution
Solution Summary
The solution explains the impact on coupon rate, price and YTM of a bond due to a change in market yield
Solution Preview
Price - The price of a bond has an inverse relationship with the interest rates. If the market yields decrease after the issue, the price of the bond will increase. This happens ...
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Operations Management
This quiz tests a student's knowledge about Operations Management
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media