Question
Bond Dave has a 10 percent coupon rate, makes semiannual payments, a 5 percent YTM, and 22 years to maturity. If interest rates suddenly rise
Bond Dave has a 10 percent coupon rate, makes semiannual payments, a 5 percent YTM, and 22 years to maturity. If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? Enter the answer with 4 decimals (e.g. 0.0123).
Prefer work to be done in Excel if possible! Thank You
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
