A General Power bond carries a coupon rate of 8.9%, has 9 years until maturity, and sells at a yield to maturity of 7.9%

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A General Power Bond Carries A Coupon Rate Of 8 9 Has 9 Years Until Maturity And Sells At A Yield To Maturity Of 7 9 1 (18.33 KiB) Viewed 33 times

A General Power bond carries a coupon rate of 8.9%, has 9 years until maturity, and sells at a yield to maturity of 7.9% (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 6.9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. If the yield to maturity falls to 6.9%, will the current yield be less, or more, than the yield to maturity? a b C d Interest payments Price Price will Current yield is $ nse Check my w 89 by than yield to maturity