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A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond
A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 11.27 years and convexity of 183.3. The bond currently sells at a yield to maturity of 8%. Required:
a. Find the price of the bond if its yield to maturity falls to 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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