Exhibit 11-2
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)
XLR Corporation just issued a $1,000 par value bond with a 7% yield to maturity, twenty years to maturity, with an 8% semi-annual coupon rate.
-Refer to Exhibit 11-2. If market interest rates rise to 10%, what will the price of the XLR Corporate bond be in three years?
A) $832.89
B) $838.07
C) $1097.63
D) $1,102.85
E) $1,191.43

Question

Quizplus · Accepted Answer

The Answer of Exhibit 11-2
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)
XLR Corporation just issued a $1,000 par value bond with a 7% yield to maturity, twenty years to maturity, with an 8% semi-annual coupon rate.
-Refer to Exhibit 11-2. If market interest rates rise to 10%, what will the price of the XLR Corporate bond be in three years?
A) $832.89
B) $838.07
C) $1097.63
D) $1,102.85
E) $1,191.43

Exhibit 11-2 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT PROBLEM(S)