Consider a 15-year 12 percent annual coupon bond with a, Ask an Expert

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Consider a 15-year, 12 percent annual coupon bond with a required return of 8 percent. The bond has a face value of $1,000. Which of the following is correct? Round your calculations/answers to two decimals.

I. The price of the bond is 1,342.38.

II. If interest rates rise to 10 percent, the price of the bond would be 1,152.12.

III. If interest rates rise to 10 percent, the percentage change in price would be -11.47 percent.

I only

II only

I and II only

I and III only

I, II, and III

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92404950

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