Determine the change in the price of the bond
Question:
A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%?
Now Priced at $20 (50% Discount)
Recommended (96%)
Rated (4.8/5)
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