Question
A bond with a 7-year duration is worth $1,070, and its yield to maturity is 7.0%. If the yield to maturity falls to 6.94%, you
A bond with a 7-year duration is worth $1,070, and its yield to maturity is 7.0%. If the yield to maturity falls to 6.94%, you would predict that the new value of the bond will be approximately _________.
$1,069.36
$1,070.00
$1,074.17
$1,070.64
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
