1-Suppose you buy a 7 percent coupon, 20-year bond today when it’s issued. If interest rates suddenly rise to 15 percent, what happens to the value
1-Suppose you buy a 7 percent coupon, 20-year bond today when it’s issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why?2-WMS, Inc., has 7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond […]