If interest rates rise to 12%, what will be the new price of Bond D? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 20 options: $1,283.92 $924.77 $1,309.86 $514.49

If interest rates rise to 12%, what will be the new price of Bond D? Coupon Current Price Remaining Term Bond A 5% $ 703.11 20 years Bond B 7% $ 932.05 10 years Bond C 11% $ 1,078.63 3 years Bond D 11% $ 1,296.89 20 years Question 20 options: $1,283.92 $924.77 $1,309.86 $514.49

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6DTM

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Question

If interest rates rise to 12%, what will be the new price of Bond D?

	Coupon	Current Price	Remaining Term
Bond A	5%	$ 703.11		20 years
Bond B	7%	$ 932.05		10 years
Bond C	11%	$ 1,078.63		3 years
Bond D	11%	$ 1,296.89		20 years

Question 20 options:

	$1,283.92
	$924.77
	$1,309.86
	$514.49

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