What is percentage change in price if market yield decreases


Problem

A ten-year annual pay bond with a 5% coupon rate is trading with a market yield of 7.75%. What is the percentage change in price if the market yield decreases by 75 basis points immediately after the bond is issued?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is percentage change in price if market yield decreases
Reference No:- TGS03315845

Expected delivery within 24 Hours