What happens to the price of an existing bond in secondary, Financial Management

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What happens to the price of an existing bond in secondary

1. 10% annual coupon.20 year bond.Par is $1000.One year into the bond’s life (19 years to maturity), the market rates are cut down to 8.5%.What is the value of the bond?

2. 6% coupon.25 year bond.Pays semiannually.$1000 par.Price is $1,300.What is the Yield to Maturity?

3. What happens to the price of an existing bond (in the secondary markets, which are typically over-the-counter) when interest rates rise across all maturity lengths?

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Financial Management: What happens to the price of an existing bond in secondary

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