Question
A company issues a ten year $1,000 face value bond at par with a coupon rate of 6.5% paid semiannually. The YTM at the beginning
A company issues a ten year $1,000 face value bond at par with a coupon rate of 6.5% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.7%.
What was the percentage change in the price of the bond over the past two years?
-10.42%
-15.62%
-13.01%
-18.22%
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Investment Management
Authors: Stephen Lofthouse
2nd Edition
047149237X, 9780471492375
