Annual coupon bond with a required return

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Consider a 10-year, 12 percent annual coupon bond with a required return of 8 percent. The bond has a face value of $1,000. Which of the following is correct? Round your calculations to two decimals.

I. The price of the bond is 1,2680.40

II. If interest rates rise to 10 percent, the price of the bond would be 1,152.12

III. If interest rates rise to 10 percent, the percentage change in price would be -14.17 percent.

Reference no: EM13846392

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