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One Year Ago, Alpha Supply Issued 15-Year Bonds at Par

Question 87

Multiple Choice

One year ago, Alpha Supply issued 15-year bonds at par.The bonds have a coupon rate of 6.5 percent, paid semiannually, and a face value of $1,000.Today, the market yield on these bonds is 7.2 percent.What is the percentage change in the bond price over the past year?


A) 5.94 percent
B) 5.38 percent
C) -6.11 percent
D) -5.87 percent
E) The bond price did not change.

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