Question
Assume you have a 9 year, 3.95% semiannual coupon bond with a face value of $1,000. Assume that the bond's yield to maturity was 2.98%
Assume you have a 9 year, 3.95% semiannual coupon bond with a face value of $1,000. Assume that the bond's yield to maturity was 2.98% but has increased to 3.70%. What has been the impact on the price of the bond (in percentage terms)? Please show all of your work.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
