You purchased a 30 year bond a year ago with a coupon interest rate and yield-to-maturity of 6%. market interest rates today for bonds of similar risk and maturity are 13%. if you decide to sell your bond today, you would expect: a. to sell the bond for less than what you paid for the bond.
b. to sell the bond for more than what you paid for the bond.
c. that since the coupon of the bond does not change, the price of the bond has not changed.
d. that since the par value of the bond does not change, the price of the bond has not changed.
e. that since there is insufficient information to make a determination why interest rates changed, it is impossible to determine whether the price of the bond has increased or decreased.
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You purchased a 30 year bond a year ago with a coupon interest rate and yield-to-maturity of 6%. mar...
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