A $5000 Bond with a Coupon Rate of 6

question 82

Multiple Choice

A $5000 bond with a coupon rate of 6.4% paid semiannually has four years to maturity and a yield to maturity of 6.2%.If interest rates fall and the yield to maturity decreases by 0.8%,what will happen to the price of the bond?

• A)fall by $98.64
• B)fall by $40.49
• C)rise by $84.46
• D)rise by $142.78

Understand the concept of molarity and how to calculate changes in molarity upon dilution.

Identify weak and strong acids and their common characteristics.

Identify weak and strong bases and their properties.

Understand and predict the products of specific acid-base reactions, including neutralization and saponification.

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Definitions:

Cash Flow Amounts

The net amount of cash and cash-equivalents being transferred into and out of a business.