Question
Bond Features Maturity (years) = 6 Face Value = $1,000 Starting Interest Rate 4.86% Coupon Rate = 4% Coupon dates (Annual) If interest rates change
| Bond Features | |
| Maturity (years) = | 6 |
| Face Value = | $1,000 |
| Starting Interest Rate | 4.86% |
| Coupon Rate = | 4% |
| Coupon dates (Annual) |
If interest rates change from 4.86% to 5.66% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 4 ?
State your answer to the nearest penny (e.g., 48.45)
If there is a loss, state your answer with a negative sign (e.g., -52.30)
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
