Coupon payment is made annually and the bond is priced to


A $1,000 par value bond with five years left to maturity has 6% coupon rate. Coupon payment is made annually and the bond is priced to have a 5% yield to maturity (YTM).

If the YTM surprisingly increases by 0.5%, by how much will the bond's price change?

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Financial Management: Coupon payment is made annually and the bond is priced to
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