Business, 29.12.2021 20:10 TerronRice

Assume that three years ago, you purchased a corporate bond that pays 4.60 percent. The face value of the bond was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 5.20 percent. (a) What is the annual dollar amount of interest that you receive from your bond investment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
(b) Assuming that comparable bonds are paying 4.90 percent, what is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
(c-1) Did the bond increase or decrease in value? Decreased in value Increased in value
(c-2) Why did the bond increase or decrease in value? Because market rates decreased Because market rates increased

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Assume that three years ago, you purchased a corporate bond that pays 4.60 percent. The face value o...

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