What interest payments do bondholders receive each year

Assignment Help Financial Management

Reference no: EM131819358

A General Power bond carries a coupon rate of 8.1%, has 9 years until maturity, and sells at a yield to maturity of 7.1%. (Assume annual interest payments.)

a. What interest payments do bondholders receive each year?

b. At what price does the bond sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. What will happen to the bond price if the yield to maturity falls to 6.1%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131819358

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