A 10-year Treasury bond is issued with a face value of $1,000, paying interest of $60 a year. If market yields increase shortly after the T-bond is issued, what happens to the bonds:
A) coupon rate?
C) yield to maturity?
A. Coupon Rate - Coupon rate remains fixed for the life of the bond and does not change.
B. Price - If ...
The solution explains how the coupon, price and yield on a treasury bond will change when market interest rate changes in approximately 89 words.