Calculate the percentage change in the price over the


Calculate the percentage change in the price over the course of a year for a bond with semi-annual coupon payments based on the following information:

Initial YTM = 6.875%

Coupon Rate = 4.5%

Time to maturity = 16 years

One year later: YTM = 8.85%

Answer choices:

Decrease by 18.17%

Decrease by 29.45%

Increase by 12.55%

Decrease by 16.73%

Not enough information

Increase by 11.98%

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Financial Management: Calculate the percentage change in the price over the
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