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A Company Issues a Ten-Year $1,000 Face Value Bond at Par

Question 88

Multiple Choice

A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.7% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.1%. What was the percentage change in the price of the bond over the past two years?


A) -6.50%
B) -9.75%
C) -8.13%
D) -11.38%

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