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A 3-year bond paying 8% coupons semiannually has a current price of $97.4211 and a current yield of 9% compounded semiannually. If the bonds yield
A 3-year bond paying 8% coupons semiannually has a current price of $97.4211 and a current yield of 9% compounded semiannually. If the bonds yield increases by 100 basis points, then the price will be $94.9243. Calculate the percentage change in the bonds price resulting from a 100 basis point increase in the yield.
Please solve by calculation.
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