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11 -- Part 5: Bond Valuation
When interest rates rose, the bond was held until par value.
The ex-post realized return of the bond investment was higher than the YTP at the time of issue.
If market yields increase 100 basis points, the price of an ordinary, noncallable bond with a 9% coupon would experience a 12% change.
The bond's price is most likely to increase by 12% if the market yields decrease.
There is a bond with a par value of $1,000.
If the yield on the bond is expected to change from 8.80% to 8.95%, the estimated new price for the bond is best described as a.
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