A 100-year corporate bond has a coupon rate of 6% with monthly payments. If interest rates drop to 4% on similar bonds, then what is the value of the bond in the marketplace?
– A 30-year annual bond is offered at 6%. After that the buyer of the bond sells the bond to someone else, but in between interest rates rose to 6.5%. Why is the first buyer of the bond upset with what the second buyer of bond is willing to pay?
– A 10-year corporate bond has a coupon rate of 6% with annual payments. If the current value of the bond in the marketplace is $900, then what is the Yield-to-Maturity (YTM)?