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A company is planning to issue bonds with a coupon rate of 9 . 7 5 % paid semi - annually and maturing in 1

A company is planning to issue bonds with a coupon rate of 9.75% paid semi-annually and maturing in 15 years with a face value of $1000. The yield on similar bonds in the market is currently 8.25%. They. recently paid $2.5 per share as dividend and expects the dividends to grow indefinitely by 4%. Equity Investors demand a rate of return of 8% on the stock.By how much will the price of the bond change by if the yield increases from 8.25% to 10%?

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