What will happen to the price of the bond

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1. A $1,000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If interest rates rise and the yield to maturity increases to 8.6%, what will happen to the price of the bond?

The price of the bond will rise by $15.78.

The price of the bond will fall by $18.93.

The price of the bond will fall by $15.78.

The price of the bond will not change.

2. Mart's Boutique has sales of $820,000 and costs of $540,000. Interest expense is $36,000 and depreciation is $59,000. The tax rate is 35 percent. What is the net income?

$158,600

$120,250

$105,000

$179,250

$99,600

Reference no: EM131842226

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