Bond-price-coupon rate and yield to maturity


Question : 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

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Finance Basics: Bond-price-coupon rate and yield to maturity
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