Question
A bond with a 9-year duration is worth $1,072, and its yield to maturity is 7.2%. If the yield to maturity falls to 7.12%, you
A bond with a 9-year duration is worth $1,072, and its yield to maturity is 7.2%. If the yield to maturity falls to 7.12%, you would predict that the new value of the bond will be approximately _________.
Multiple Choice
-
$1,071.14
-
$1,072.00
-
$1,079.18
-
$1,072.86
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
Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
