Question
A 5.8 percent, 15-year bond is currently priced at $924.55. The required yield is 6.6 percent. The yield immediately changes to 6.7 percent. What will
A 5.8 percent, 15-year bond is currently priced at $924.55. The required yield is 6.6 percent. The yield immediately changes to 6.7 percent.
What will be the new price of the bond?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
We can use the formula for bond price to calculate the new price P C 1 1 1 rn r ...
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Step: 2
Step: 3
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
