Question
1. The bond issued by the AXB Corporation has a coupon rate of 15%, face value of 1,000 and time to maturity of 4 years.
1. The bond issued by the AXB Corporation has a coupon rate of 15%, face value of 1,000 and time to maturity of 4 years. If the market interest rate moves from 10% to 14%, what would be the change in the price of this bond? Show your steps in your solution. (50 MARKS)
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The Structural Foundations Of Monetary Policy
Authors: Michael D. Bordo, John H. Cochrane, Amit Seru
1st Edition
0817921346, 978-0817921347
