If interest rates rise and the yield to maturity increase


A $1000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5% If interest rates rise and the yield to maturity increase to 7.8 what will happen to the price of the bond? How much will the price increase or decrease?

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Financial Management: If interest rates rise and the yield to maturity increase
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