Question
Bond A pays 8.8 % coupons and is priced at par value. It has 2 years to maturity. If interest rates suddenly rise by 1.4%,
Bond A pays 8.8 % coupons and is priced at par value. It has 2 years to maturity. If interest rates suddenly rise by 1.4%, what is the percentage change in price of Bond A? What is the now the price of Bond A?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
