Google Answers: Finance

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Q: Finance ( No Answer, 1 Comment )

Question

Subject: Finance
Category: Business and Money
Asked by: chicken24-ga
List Price: $2.00

Posted: 01 Aug 2005 19:18 PDT
Expires: 31 Aug 2005 19:18 PDT
Question ID: 550632

A 10 yr Treasury Bond is issued with a face value of $1,000, paying
interest of $60 a year. If market yields increase shortly after the
T-bond is issued, what happens to the bond's: coupon rate? price?
yield to maturity?

Answer

There is no answer at this time.

Comments

Subject: Re: Finance
From: iubksob-ga on 05 Aug 2005 19:01 PDT

The coupon rate stays the same regardless of changes in market rates. 
The price will fall to reflect the demand from the market for higher
yield.  The yield to maturity wil also rise.

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