A $1000 Bond with a Coupon Rate of 5

question 51

Multiple Choice

A $1000 bond with a coupon rate of 5.4% paid semi-annually has five years to maturity and a yield to maturity of 7.5%.If interest rates rise and the yield to maturity increases to 7.8%,what will happen to the price of the bond?

• A)fall by $9.82
• B)fall by $11.58
• C)rise by $12.16
• D)rise by $10.06
• E)The price of the bond will not change.

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Definitions:

Sexual Freedom

The liberation and empowerment in expressing one's sexual orientation, choices, and practices freely, without societal, cultural, or legal restrictions.

Progressive Era

A period of widespread social activism and political reform in the United States from the 1890s to the 1920s, aimed at eliminating problems caused by industrialization, urbanization, immigration, and corruption.

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