Bond Features

Maturity (years) =

7

Face Value =

$1,000

Starting Interest Rate

3.80%

Coupon Rate =

4%

Coupon dates (Annual)

If interest rates change from 3.80% to 5.12% immediately after you buy the bond today (and stay at the new interest rate), what is the price effect in year 6 ?

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)