Question
A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.8% paid semiannually. The YTM at the beginning of
A company issues a ten-year $1,000 face value bond at par with a coupon rate of 6.8% paid semiannually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.2%. Over the past 2 years, the price of the bond fell by ____%
Why answer is 8.097?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
