Question
A bond trader purchased each of the following bonds at a yield to maturity of 6%. Immediately after she purchased the bonds, interest rates fell
A bond trader purchased each of the following bonds at a yield to maturity of 6%. Immediately after she purchased the bonds, interest rates fell to 5%. What is the percentage change in the price of thefollowingbond after the decline in interest rates?
$100 perpetuity
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
