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BUSN 379 Coupon Rates/TUTORIALOUTLET DOT COM

Chapter 4: 8, 17, and 18<br>8. Coupon Rates. Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 8.4<br>percent, and a current price of $945. The bonds make semiannual payments. What must the coupon rate<br>be on the bonds?<br>

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BUSN 379 Coupon Rates/TUTORIALOUTLET DOT COM

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  1. BUSN 379 Coupon Rates/TUTORIALOUTLET DOT COM

  2. BUSN 379 Coupon Rates/TUTORIALOUTLET DOT COM BUSN 379 Coupon Rates FOR MORE CLASSES VISIT www.tutorialoutlet.com Chapter 4: 8, 17, and 188. Coupon Rates. Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 8.4 percent, and a current price of $945. The bonds make semiannual payments. What must the coupon rate be on the bonds? 17. Interest Rate Risk. Bond J has a coupon rate of 4 percent. Bond S has a coupon rate of 14 percent.Both bonds have 10 years to maturity, make semiannual payments, and have a YTM of 8 percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What ifrates suddenly fall by 2 percent instead? What does this problem tell you about the interest rate risk of lower-coupon bonds?

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