1.	Several years ago, Castles in the Sand, Inc., issued bonds at face
value at a yield to maturity of 7 percent. Now, with 8 years left
until the maturity of the bonds, the company has run into hard times
and the yield to maturity on the bonds has increased to 15 percent.
What has happened to the price of the bond?

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Request for Question Clarification by scriptor-ga on 14 Jan 2006 09:28 PST

Google Answers discourages and may remove questions that are homework
or exam assignments.

Regards,
Scriptor

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Clarification of Question by davinci284-ga on 14 Jan 2006 10:40 PST

Has the bond increased or decreased in value?

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Request for Question Clarification by endo-ga on 14 Jan 2006 12:14 PST

Hi,

As Scriptor mentioned, homework questions are discouraged, but I can
give you some pointers and help you come to the conclusion yourself if
that would be satisfactory?

Thanks.
endo