Question
A 25 year bond that was issued exactly 6 years ago has a stated interest rate of 4.75%. Interest is paid twice per year. What
A 25 year bond that was issued exactly 6 years ago has a stated interest rate of 4.75%. Interest is paid twice per year. What is the price of the bond if the YTM is now 5.375%? (assume $1000 face value)
If interest rates surprisingly increase by 0.25%, by how much will the bond's price change?
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Beer Business Finance
Authors: Kary R Shumway
1st Edition
1090833741, 978-1090833747
