What is the change in the value of your bond show work


Suppose you own a bond that has a par value of $1000, has 25 years to maturity, pays a coupon of 5% paid semiannually and has a yield to maturity of 4.8%. The bond rating is downgraded which causes the yield to maturity to increase to 5.2%. What is the change in the value of your bond? Show work, provide time lines, and mathematical equations.

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Finance Basics: What is the change in the value of your bond show work
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