Question
A bond issued by Chronos Tech Inc., is currently trading with a 5.70% YTM. The bond has 10 years to maturity and has a coupon
A bond issued by Chronos Tech Inc., is currently trading with a 5.70% YTM. The bond has 10 years to maturity and has a coupon rate of 7.2%. The other features of the bond are standard. If interest rates suddenly change by 1.43%, by how much does the price of the bond change as a result of the interest rate change?
Answer as a PERCENTAGE to two decimals, be aware to include the negative sign if appropriate.
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
