Question
A newly issued two-year coupon bond has a par value of $100, a coupon rate of 5 percent ($5) and a yield y = 4
A newly issued two-year coupon bond has a par value of $100, a coupon rate of 5 percent ($5) and a yieldy= 4 percent per year. If the yield goes up by 0.5 percent, then, according to the modified duration formula for a bond's price change, the bond price will:
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
