Google Answers: T-Bond impact on corporate bond

View Question

Q: T-Bond impact on corporate bond ( No Answer, 2 Comments )

Question

Subject: T-Bond impact on corporate bond
Category: Business and Money > Finance
Asked by: billydc-ga
List Price: $15.00

Posted: 20 Dec 2005 19:18 PST
Expires: 21 Dec 2005 17:27 PST
Question ID: 608275

A 10-year Corporate bond is issued with a face value of $100,000,
paying interest of $2,500 semi-annually. If market yields decrease
shortly after the T-bond is issued, what happens to the bond?s:
a. price?               
b. coupon rate?               
c. yield to maturity?

Answer

There is no answer at this time.

Comments

Subject: Re: T-Bond impact on corporate bond
From: mohamed_elkamony-ga on 21 Dec 2005 15:37 PST

A- The bond's price will increase as its Yield to Maturity (YTM) will
decrease, causing the bond to sell at a premium.

B- Coupon Rate and Coupon Interest will stay the same.

C- YTM will decrease.

Regards,
Mohamed El-Kamony
22 Dec. 2005

Subject: Re: T-Bond impact on corporate bond
From: billydc-ga on 21 Dec 2005 17:27 PST

Thanks!  That is what I thought, but I thought I would try to confirm!

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.

Search Google Answers for

Google Home - Answers FAQ - Terms of Service - Privacy Policy