Question
Assume that the price of a $1,000 zero coupon bond with five years to maturity is $567.43 when the required rate of return is 12
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Assume that the price of a $1,000 zero coupon bond with five years to maturity is $567.43 when the required rate of return is 12 percent. If the required rate of return suddenly changes to 13 percent, what is the price elasticity of the bond?
-.980
+.980
-.522
+.522
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Health Care Budgeting And Financial Management
Authors: William J. Ward Jr.
2nd Edition
1440833052, 9781440833052
