Assume that a bond has a current price of $856,32, a coupon rate of 10 percent (pays $50 every six months), and that you and the market require a 12 percent
rate of return (6 percent every six months). Based on this information, and
assuming that rates remain constant, determine by how much the price of this
bond will increase over the next 6 months
$1.65
You Answered
$1.56
16 You selected this answer
$1.42
1124
Correct Answer
$1.38