You buy a 30-year bond that pays coupons quarterly and has a face value of...
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You buy a 30-year bond that pays coupons quarterly and has a face value of $10,000. The current yield-to-maturity of the bond is 5% and the annual coupon rate is 3%. 1) What is the current price of this bond? 2) What is the annual effective yield (EY) of this bond? 3) Suppose you hold the bond for 10 years. At ten years, the current yield to maturity is now 8%. What is the new price of the bond?
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