Question
Bank B issued a new bond with 6% coupon rate and $100 par value bond. Coupon is paid annually. The bond has five years to
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Bank B issued a new bond with 6% coupon rate and $100 par value bond. Coupon is paid annually. The bond has five years to maturity. By what percentage did the price of this bond change if the required yield increases from 4% to 5%? Show work. No graphing calculator allowed.
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Personal Finance
Authors: Jane King, Mary Carey
2nd Edition
0198748779, 9780198748779
