Solved: How much do you stand to gain or lose if ytm goes up, Finance Basics

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How much do you stand to gain or lose if ytm goes up

Question:

You are contemplating buying a 4 3/4% coupon bond that makes semi-annual interest payments. The bond matures in 10 years and the yield-to-maturity currently is 4.18%. How much are you willing to pay for a face value of $1,000,000 of this bond? In addition, how much do you stand to gain or lose if YTM goes up by 0.25%?

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Finance Basics: How much do you stand to gain or lose if ytm goes up

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