What happens to the bond-s coupon rate and price
A 10-year 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 bond's
a. Coupon rate?
b. Price?
c. Yield to maturity?
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A 10-year 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 bond's Coupon rate?
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If a bond's coupon rate is lower than its yield to maturity, then the bond's price will increase over its remaining maturity.
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