If you purchased a $1,000 General Motors (GM) 10 year coupon bond, today, with a coupon rate of a 5.0 percent, the coupon payment would be $ (Enter your response as an integer.) Then, tomorrow, interest rates rose to 6.0 percent, the price of the bond would Hence, there is a(n) relationship between interest rates and the price of the bond. direct constant to $. (Enter your response as an integer.) inverse

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
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If you purchased a $1,000 General Motors (GM) 10 year coupon bond, today, with a coupon rate of a 5.0 percent, the coupon payment would be $
(Enter your response as an integer.)
$0.
Then, tomorrow, interest rates rose to 6.0 percent, the price of the bond would
Hence, there is a(n)
relationship between interest rates and the price of the bond.
direct
constant
to $. (Enter your response as an integer.)
inverse
Transcribed Image Text:If you purchased a $1,000 General Motors (GM) 10 year coupon bond, today, with a coupon rate of a 5.0 percent, the coupon payment would be $ (Enter your response as an integer.) $0. Then, tomorrow, interest rates rose to 6.0 percent, the price of the bond would Hence, there is a(n) relationship between interest rates and the price of the bond. direct constant to $. (Enter your response as an integer.) inverse
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