Question
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4.1%.
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4.1%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.3%? (If your answer is, e.g., 1.123%, enter it as 1.123.)
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To calculate the percentage change in the bond price when the yield changes we can use the bond pric...
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
