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A bond has a FV of $ 1 , 0 0 0 , a price of $ 1 , 0 2 3 . 0 7

A bond has a FV of $

1, 000,

a price of $

1, 023.07,

YTM of

6.2 %

and a duration of

7.883 .

What is the $ change in the price of the bond when its YTM falls by

0.25 % ? [

Note: the question asks for the change in price rather than the new price.

]

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