A General Power bond with a face value of $1,000 carries a coupon rate of...
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Accounting
| A General Power bond with a face value of $1,000 carries a coupon rate of 8.3%, has 9 years until maturity, and sells at a yield to maturity of 7.3%. (Assume annual interest payments.) |
| a. | What interest payments do bondholders receive each year? |
| Interest payments | $ |
| b. | At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Price | $ |
| c. | What will happen to the bond price if the yield to maturity falls to 6.3%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Price will | (Click to select)risefall by | $ |
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