A General Power bond carries a coupon rate of 10.0%, has 9 years until maturity, and sells at a yield to maturity of 9.0%. (Assume annual interest payments.)
a. What interest payments do bondholders receive each year?
b. At what price does the bond sell? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
c. What will happen to the bond price if the yield to maturity falls to 8.0%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a. Interest payments
b. Price
c. Price will