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:
Yield to Maturity© BrainMass Inc. brainmass.com June 3, 2020, 6:47 pm ad1c9bdddf
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 ...
The solution explains the impact on coupon rate, price and YTM of a bond due to a change in market yield