Question
A $1,000 par value bond with Four years left to maturity pays an interest payment semiannually with a 9 percent coupon rate and is priced
A $1,000 par value bond with Four years left to maturity pays an interest payment semiannually with a 9 percent coupon rate and is priced to have a 8.2 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bonds price change?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
