Question
A 6.50 percent coupon bond with 10 years left to maturityis priced to offer a yield to maturity of 8.0 percent. You believe that in
A 6.50 percent coupon bond with 10 years left to maturityis priced to offer a yield to maturity of 8.0 percent. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars?(Do not round intermediate calculations. Round your finalanswer to 2 decimal places.)
Change in bond price $_______
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
