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Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate = 4.00% Face Value = $1,000 Annual Coupons When you
Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate = 4.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 4.00% Immediately after you buy the bond the interest rate changes to 3.50% What is the "price risk" effect in year 3 ? a) $14.43 b) -$14.01 c) -$14.43 d) $14.01 e) -$13.59 f) $13.59
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