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An investor purchases a McDonalds corporate bond for $985 ($1,000 principal, paid semi-annually, maturity of 12 years, 3.3% coupon rate). What is the percentage change

An investor purchases a McDonalds corporate bond for $985 ($1,000 principal, paid semi-annually, maturity of 12 years, 3.3% coupon rate). What is the percentage change in the bond if the yield-to-maturity of the bond goes up +12.0% from its original level? Still assume 12 years until maturity.

-35%

+90%

-65%

+43%

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