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Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of 5.5% (paid semiannually), the par value of $1,000, and a 15-year maturity. The investors' required rate of return at the time of issue was 5.5%. How much would you have paid to purchase the bond? Vb = $1,000 ✔Assume that immediately after you purchased the bond, the market conditions changed, so the investors' rb increased from 5.5% to 6.5%. How would the value of your bond be affected? Vb ↓ to $905.09 ✔What would happen to the bond price if rb decreased from 5.5% to 4.5% immediately after the bond was issued? Vb ↑ to $1108.23 Please make sure your answer is correct. Don't answer if you are not sure. don't use chat gpt as well. Thank you

Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of 5.5% (paid semiannually), the par value of $1,000, and a 15-year maturity. The investors' required rate of return at the time of issue was 5.5%. How much would you have paid to purchase the bond? Vb = $1,000 ✔Assume that immediately after you purchased the bond, the market conditions changed, so the investors' rb increased from 5.5% to 6.5%. How would the value of your bond be affected? Vb ↓ to $905.09 ✔What would happen to the bond price if rb decreased from 5.5% to 4.5% immediately after the bond was issued? Vb ↑ to $1108.23 Please make sure your answer is correct. Don't answer if you are not sure. don't use chat gpt as well. Thank you

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of 5.5% (paid semiannually), the par value of $1,000, and a 15-year maturity. The investors' required rate of return at the time of issue was 5.5%. How much would you have paid to purchase the bond? Vb = $1,000 ✔Assume that immediately after you purchased the bond, the market conditions changed, so the investors' rb increased from 5.5% to 6.5%. How would the value of your bond be affected? Vb ↓ to $905.09 ✔What would happen to the bond price if rb decreased from 5.5% to 4.5% immediately after the bond was issued? Vb ↑ to $1108.23 Please make sure your answer is correct. Don't answer if you are not sure. don't use chat gpt as well. Thank you
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