Consider a 10 year bond which pays 6 coupon semi-annually


Consider a 10 year bond which pays 6% coupon semi-annually and has a yield-to-maturity of 8%. How much would the price of bond change if investors required return changes to 7% per year?

Answer

increase by 6.98%

increase by 7.51%

decrease by 6.98%

decrease by 7.65%

 

 

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Finance Basics: Consider a 10 year bond which pays 6 coupon semi-annually
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