Question
A bond with a $1,000 par, 7 years to maturity, a coupon rate of 6%, and annual payments has a yield to maturity of 3.9%.
A bond with a $1,000 par, 7 years to maturity, a coupon rate of 6%, and annual payments has a yield to maturity of 3.9%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.4%?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
