Annual coupon rate-market rate


Suppose a 10-year bond is issued with an annual coupon rate of 8 percent when the market rate of interest is also 8 percent. If the market rate rises to 9 percent, what happens to the price of this bond? What happens to the bond's price if the market rate falls to 6 percent? Explain why.

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Finance Basics: Annual coupon rate-market rate
Reference No:- TGS049821

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