If ytm decreases to 78 what is the change to bond price, Financial Management

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If ytm decreases to 78 what is the change to bond price

A 20 year bond pays an annual coupon of 6%. The current YTM is 8%

1) What is the duration of this bond? (Use the excel file for Chapter 11 to help you figure out the answer)

2) If YTM decreases to 7.8%, what is the change to bond price according to the duration formula? What is the change to bond price predicted by bond value formula?

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Financial Management: If ytm decreases to 78 what is the change to bond price

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Financial Management: If ytm decreases to 78 what is the change to bond price

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