Question
14. How much would be the loss in price if an investor purchased a 15-year bond with a $1,000 par value, a 6% coupon paid
14. How much would be the loss in price if an investor purchased a 15-year bond with a $1,000 par value, a 6% coupon paid annually and a 7% yield to maturity at the beginning, only to see market interest rates increase to 15% one year later?
-$339.30
-$424.12
-$296.89
-$466.54
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
