Change in price the bond, Question: What is the change in price the bond will experience, Accounting Basics

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Change in price the bond

Problem:

A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a 7.8 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent.

Required:

Question: What is the change in price the bond will experience in dollars?

Note: Please show basic calculation

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Accounting Basics: Change in price the bond

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Accounting Basics: Change in price the bond

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