A 1000 par value bond with seven years left to maturity


A $1,000 par value bond with seven years left to maturity pays an interest payment semiannually with a 10 percent coupon rate and is priced to have a 9 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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Financial Management: A 1000 par value bond with seven years left to maturity
Reference No:- TGS02240052

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