Question
Citi-group has a 7-year coupon bond with 6% coupon rate and a $1,000 par value. Coupons are paid annually. The bond has a yield to
Citi-group has a 7-year coupon bond with 6% coupon rate and a $1,000 par value. Coupons are paid annually. The bond has a yield to maturity of 5.5%, compounded annually. If the yield suddenly increases to 6.5%. Which of the following statements is TRUE?
The bond price will increase by $57.14
The bond price will increase by 5.29%
The bond price will decrease by $53.62
The bond price will decrease by 5.43%
The bond price will decrease by 5.36%
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Finance For Nonfinancial Managers Beginners Handbook For Finance
Authors: Murugesan Ramaswamy
1st Edition
1516973801, 978-1516973804
