What would happen to the price of a three-year coupon-paying
Problem
What would happen to the price of a three-year coupon-paying bond, with a face value of $100 and a coupon rate of 10% per annum (coupon paid quarterly), if the required rate of return was:
• 12% per annum?• 8% per annum?
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What would happen to the price of a three-year coupon-paying bond, with a face value of $100 and a coupon rate of 10% per annum.
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