A 1000 par value bond with five years left to maturity pays


Question: A $1,000 par value bond with five years left to maturity pays an interest payment semiannually with a 6 percent coupon rate and is priced to have a 5 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond's price change?

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Finance Basics: A 1000 par value bond with five years left to maturity pays
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