Question
A bond with a 8-year duration is worth $1,087, and its yield to maturity is 8.7%. If the yield to maturity falls to 8.47%, you
A bond with a 8-year duration is worth $1,087, and its yield to maturity is 8.7%. If the yield to maturity falls to 8.47%, you would predict that the new value of the bond will be approximately _________.
a) $1,089.50
b)$1,105.37
c)$1,084.50
d)$1,087.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
